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Alphawave IP and Deliveroo’s early share struggles obscure better time for most London IPOs

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With Alphawave IP Group PLC’s (LON:AWE) unhappy first day of dealings emulating a similarly wretched debut for Deliveroo PLC (LON:ROO) last month, some investors might have had the feeling that London’s IPO scene was not all it is cracked up to be.

The early market travails of this pair of multibillion tech companies is, however, casting an unwarranted shadow on the rest of this year’s new arrivals.

READ: Chipmaker Alphawave IP tumbles on London debut

In fact of the 32 initial public offers on the London Stock Exchange so far in 2021, including a handful of introductions where newcomers issued no new shares, only seven are in negative territory and only three in double digits.

And that’s including the market’s inflation-induced wobbles this week.

London’s 2021 influx are up 31% on average, with 18 companies up by double digits and four having more than doubled already.

Of the 29 IPOs where new shares were issued, an equal investment in each one, weighted by market cap would have gained 15.5%, pointed out Simon French, chief economist at Panmure Gordon.

The best performances so far have been from acquisitive bar operator Nightcap PLC (LON:NGHT) – which has been quick to get busy making deals – and even busier Cyprus copper producer Caerus Mineral Resources PLC (LON:CMRS), up 154% and 148% respectively.

Umuthi Healthcare Solutions PLC (LON:UHS), a technology led business focused on pharmaceutical and medical distribution in remote areas, is up 116% and cannabis-focused MGC Pharmaceuticals Ltd (LON:MXC, ASX:MXC) up 110%.


* latest share prices from midday 13/5/21

 

The new arrivals on the LSE so far in 2021 have raised £2.8bn, led by Deliveroo’s £1bn.

On top of that, five other newcomers have drummed up at least £100mln, 10 more firms raising more than £10mln and 11 others getting off fundraisings averaging just over £5mln.

 

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