(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
LONDON (Reuters Breakingviews) - Concise insights on global finance.
GLASS HALF FULL. Hot IPO candidates giving the UK a wide berth may want to look again. On Thursday Canadian chip designer Alphawave IP announced that it would seek to raise some $500 million on the London market at a potential equity value of $4.5 billion while relocating its main research arm across the pond to Cambridge. A price equivalent to 101 times trailing annual revenue might look toppy. But it provides a piquant riposte to companies such as online auto retailer Cazoo, which decamped to the United States via a blank-cheque merger, and self-serving investment bankers carping that last month’s IPO flop Deliveroo would deter techies from the UK bourse.
It’s not all good news for the jittery IPO market. In an oblique statement on Thursday, Swedish e-payments outfit Trustly said https://www.trustly.net/press/2021/04/trustly-receives-preliminary-assessment-from-the-sfsa that financial regulators required it to perform more due diligence checks “on some consumers”. That could potentially put a spanner in a mooted $11 billion IPO. Given the volatile performance of recent European listings, it may be no bad thing. (By Christopher Thompson)
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Earlier in Capital Calls:
Canberra looks game for more brawling with Beijing
Time to put Hermès’ cash pile to use
American consumers at forefront of rising prices
Poor timing for Futu share sale
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