Media: LSEG is creating a negative atmosphere around moribund IPO market

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LSEG has been accused of creating a negative atmosphere for business in the UK and discouraging investors from buying stocks floated in London.

The London Stock Exchange owner on Wednesday advertised its upcoming IPO Forum by posting this image on LinkedIn:

CAB Payments, a cross-border payments and foreign exchange processor, joined LSE’s premium listing segment on July 6 having sold shares at 335p apiece. The stock closed its maiden session at 303p and has since fallen to 213.75p, a decline from IPO of 36 per cent.

Helios Towers, an Africa-focused telecoms tower leasing company, joined LSE’s premium listing segment on October 16, 2019, having sold shares at 115p apiece. The stock slipped below its IPO price in March 2020 and has since fallen to 73.6p, a decline of 36 per cent.

Pensionbee, an online provider of pensions, joined LSE’s premium listing segment on April 21, 2022, having sold shares at 165p apiece. The stock slipped below its IPO price within a month and has since fallen to 70p, a decline of 58 per cent.

Media commentators reacted with surprise that for LSE’s flagship IPO event, the first three speakers announced were all from companies that have left their investors holding the bag.

Instead of advertising the scorched-earth approach that has contributed to investor fatigue and a recent dearth of listings, institutions such as LSE could be doing more to help improve the business environment, said one.

“We are very negative about our entrepreneurs and our listed issuers,”
said Bryce Elder, FT Alphaville’s City editor and the author of this post. “Another point I think we need to think about is just the atmosphere we create for companies here.”

LSE’s bi-annual IPO Forum events are aimed at private companies interested in going public, rather than the shareholders they end up stuffing. An FTAV analysis published in June found that 68 per cent of UK IPOs over the previous 10 years had lost money.

Further reading
— Dear London, my negativity is not the problem (FT)