London’s stock market experienced a notable uplift on Friday, receiving a boost from the listing of an LED face mask manufacturer, coinciding with announcements from the renowned tinned fish brand Princes and Napolina tomatoes regarding their own IPO plans.
Laurence Newman, co-founder of The Beauty Tech Group, which boasts a portfolio of beauty gadget brands including CurrentBody, ZIIP Beauty, and Tria Laser, expressed pride in selecting London for his firm’s £300 million initial public offering (IPO). Newman highlighted his commitment to the UK market, stating, “I built a British business and made it into an international business … it was my decision to support the London market.” He remained optimistic that his move would inspire other businesses to follow suit.
In a parallel development, the Princes Group, which has a significant footprint in the UK food market and reported a £2.1 billion turnover, confirmed its intention to join the UK stock market. Owned by the Italian family firm Newlat, now rebranded as NewPrinces, the company is eyeing a £1.5 billion valuation and aims to raise around £400 million from new shares to fund its expansion plans. The group’s recent acquisition of the iconic Royal Liver Building in Liverpool, its original home for the past 150 years, underscores its commitment to growth in the region.
Chief Executive Simon Harrison of Princes Group noted that a listing on the London Stock Exchange is a logical progression for the company. He emphasized the importance of access to capital for their acquisition strategy, the potential for product portfolio expansion, and the need to attract talent as they look toward future growth. Executive chair Angelo Mastrolia echoed these sentiments, reinforcing the company’s confidence in its leadership and the significant opportunities in the market.
In addition to these developments, British lender Shawbrook is anticipated to commence its long-awaited IPO in London, while Fermi, a real estate investment trust, recently became the first company in decades to pursue a dual listing in both London and the US. The payment app Revolut is also reportedly considering a dual listing in New York and London for an anticipated share sale valued at $75 billion.
Despite the recent surge of new business listings, it is worth noting that fundraising from new offerings in London has reached its lowest point in at least 30 years. In response, Treasury officials are contemplating a potential exemption for newly listed companies regarding the 0.5% transaction tax on shares, which could be disclosed in an upcoming budget. A Treasury spokesperson highlighted their commitment to making the UK an attractive destination for businesses to list and grow, reinforcing the resilience of the FTSE 100, which continues to trade near its all-time highs.
However, some companies are choosing to shift their operations away from London. AstraZeneca, the UK’s largest drugmaker, recently announced plans to list its shares directly on the New York Stock Exchange, a strategic move regarded as a setback for London. This follows a trend where notable firms, including Ashtead, Flutter Entertainment, and building materials supplier CRH, have exited the London Stock Exchange in recent years.
