2014 ended up being a bumper year for Tech IPOs across the globe, but can the momentum continue into 2015? One company answering firmly in… Read more
2014 ended up being a bumper year for Tech IPOs across the globe, but can the momentum continue into 2015? One company answering firmly in the positive and giving the UK capital markets a flying start was TheTrainline.com, who announced plans for the first UK tech listing of the year, two years after its earlier attempt was derailed due to insufficient demand. Continuing a trend from 2014, TheTrainline.com is now backed by private equity owners, Exponent Private Equity, who are increasing seeing IPOs as an attractive method of realising the value of their investment. The fifth largest UK online retailer (and largest rail ticket seller in the country), TheTrainline.com is expected to be valued at around £400 million.
Expect more announcements from other UK tech businesses over the following weeks – with Auto Trader and Net-a-Porter considered by commentators to be favourites to list later in the year (at potential values around £2 billion and £1 billion respectively). Given the time involved in preparing for public market fundraising (even on AIM these days), such targets would be well advised to have their plans well progressed before May, which brings the prospect of one of the most uncertain UK general elections in recent years. The potential effect on the market is unclear, but a result with no clear winner (and subsequent scrabble for a coalition) is unlikely to be positive for businesses and investors.
There could also be some volatility next week, when the results of the general election in Greece are announced. If, as early predictive polls suggest, the anti-austerity Syriza party win the vote (although potentially not a majority), a Greek exit from the euro zone could still be a possibility. One thing is for sure: expect uncertainty.
For more information, please contact Andy Moseby, Corporate Partner.