A bonanza in UK tech IPOs may be on the cards this year , but Daniel Lanyon says investors should proceed with caution
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A bonanza in UK tech IPOs may be on the cards this year , but Daniel Lanyon says investors should proceed with caution
Burnt offerings
Bitcoin may have boomed in 2020 , but the bestperforming asset class was puppies . As locked-down workers bought furry friends like there was no tomorrow , the price of pooches soared by up to 500 per cent . In 2021 , new UK technology stock market listings may prove just as popular . IPOs ( initial public offerings ) have been few and far between in the UK for years , but that appears to be changing , with domestic listings beginning to follow in the footsteps of the US .
Fizzing stocks Scott Knight , head of audit and assurance at BDO , says the AIM market has already begun to fizz , with 16 IPOs in 2020 , 13 of which happened in the second half of the year .
“ In the early stages of the pandemic , many AIM companies sought to raise funds to prepare themselves for the storm ahead ,” he explains . “ The shock also put the brakes on IPOs , particularly in the second quarter . However , the increase in IPOs in the second half of the year points to a pent-up demand for high-quality growth companies that can create value in an economic environment that looks very different to a year ago .”
“ In the early stages of the pandemic , many AIM companies sought to raise funds to prepare themselves for the storm ahead ”
TRUSTNET