LSE – Surge of London floats raises £3.6bn in last quarter 

Even before the pandemic disruption, nervous company directors shunned capital markets in late 2019 amid uncertainty over the outcome of the UK’s departure from the EU, which took place in January 2020.  

Bankers and advisers are expecting the recent pick-up in activity to continue in 2021, though the new national lockdown could result in some companies delaying plans to float until later in the year. 

Mr McCubbin said he expects a “very strong year” for the UK listings market. “Confidence continues to build with the Brexit deal now giving clarity around the future relationship with Europe and the roll out of Covid-19 vaccinations,” he said. 

Activity on the London market could receive a further boost after City institutions and business groups threw their weight behind proposals to loosen market rules to attract more companies to list their shares in the UK instead of other venues such as New York.

The London Stock Exchange said the UK should allow companies with premium listings to use dual class share structures, the Financial Times reported. This would enable companies to give additional voting rights to some shares, allowing founders or key shareholders to maintain control.  

The Institute of Directors (IoD) said this should be allowed within a new segment of the premium market for innovative, high growth companies. 

Other changes could include easing the requirement for at least 25pc of shares to be sold as part of a listing. The changes are expected to draw opposition from corporate governance advocates. 

Roger Barker, director of policy and corporate governance at the IoD said the review of listing rules by former EU commissioner Lord Hill is a chance “to attract a new breed of fast-growing companies that are increasingly reluctant to go public”.

“However, the Government must proceed with caution,” he added. “A race to the bottom to win extra listings would ultimately be self-defeating. Good governance is one of the UK’s key selling points.”