The UK is set for a revival in initial public offerings for smaller companies toward the end of this year, according to City of London broker Cavendish.
(Bloomberg) — The UK is set for a revival in initial public offerings for smaller companies toward the end of this year, according to City of London broker Cavendish.
“We have a pipeline and we’ll probably see proper volumes come through in the first and second quarter of next year,” Cavendish co-Chief Executive Officer Julian Morse said in an interview on Tuesday. Growth firms that operate in the technology sector are among those considering a London listing, he said.
With London’s capital markets in a dry spell, the investment bank is currently getting business from M&A transactions in both public and private markets, according to Morse. Buyout groups and strategic buyers continue to feast on the low valuations of smaller UK-listed companies.
Cavendish launched as an enlarged company this week following the merger between FinnCap Group Plc and Cenkos Securities Plc.
Morse didn’t rule out buying one of London’s remaining mid-cap brokers. “Size is good,” he said, adding that any potential deal wouldn’t “happen tomorrow.
–With assistance from Thyagaraju Adinarayan and Alexandra Muller.
(Adds chart, context on UK mid-cap deals.)
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