UK-Europe IPO Market Flourishing So Far In 2021, Led By ‘Lockdown’ Names

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IPOs in the UK and Europe have gotten off to a strong start in 2021, buoyed largely by companies that have flourished in the lockdown

have raised about $10.2 billion through 16 initial public offerings so far this year, marking the best such start in the IPO market since 2015, when $9.7 billion was hauled in for the comparable period, according to data firm Refinitiv.

More than two-thirds of the new listings comprise companies that flourished amid pandemic lockdowns— online, e-commerce and gamer stocks, including UK online card retailer Moonpig, German online used car dealer Auto1 and Polish mobile gaming developer Huuuge. Despite fears that the UK IPO market would suffer from Brexit and lose listings to EU bourses, the London Stock Exchange led the way, having listed four new IPOs during the period, and two in its Alternative Investment Market submarket.Crucial Quote

“We have witnessed some tectonic shifts in the ecommerce landscape as a result of Covid — things we thought would take five years have taken five months,” saidThe listing of a flurry of tech and digital firms raises hopes that Europe can better compete with the U.S., which has been more dominant in these fields. “Europe has had a shortage of these tech companies [compared with] the US in recent years,”, adding: “There is excitement at the moment because these are high-quality companies.

 

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