London IPOs Are Dribbling Back But Funds Don’t Have Cash to Buy
Investment firepower for UK stocks has been depleted over years
The London Stock Exchange Group Plc headquarters in London.
Photographer: Jose Sarmento Matos/BloombergAlexandra Jackson was tempted by Shawbrook Group Plc’s recent initial public offering in London and looked carefully when it was marketing shares. The manager of the Rathbones UK Opportunities Fund ultimately passed, swayed by the risk of a higher bank tax being introduced.
Jackson’s caution reflects a mood still widespread among investors in London. Keen to replenish their portfolios after years of takeovers and delistings but starved of fresh capital, they’re forced to be incredibly selective with the IPOs that do come to the market.