Deep Dive: Can the UK be an IPO hub?

Valuation and SME dilemma

The state of UK capital markets has been described as “significantly concerning” by several industry players, damaging the country’s attractiveness and its ability to raise capital.

Interest in UK public markets has been waning over the last few years, with domestic interest continuously decreasing and initial public offerings drying up. Earlier this year, 2023's biggest UK IPO, CAB Payments, showed promise when it listed in July, with a market capitalisation of £851m, raising £335m from investors. Investors accuse CAB Payments of limited risk disclosure in IPO prospectus But since listing, its share price has dropped around 81%, from 303 pence to 57.6 pence as of 13 December, according to data from the London Stock Exchange. Simon Rafferty and Sunil Dhall,...