true.story16 Feb 2019 18:44
Initial public offerings (IPOs) on London’s junior market have ground almost to a halt in recent months as the threat of a Brexit cliff-edge draws ever closer.
While most businesses are understandably reluctant to nail their British or European colours to the mast, many have grown frustrated at the lack of clarity offered by Theresa May’s government despite the UK’s exit being only weeks away.
That uncertainty has filtered down to AIM, the home of almost 1,000 UK small-cap stocks, with only ten companies joining the market since July compared to 30 in the six months before.
Numbers from last month made for more grim reading when AIM companies squeezed £101.3mln out of investors, well below the long-term monthly average of around £300mln.
While Brexit is undoubtedly playing a part in the slowdown, many in the City are also pointing to economic and political issues around the globe.
The US and China, two of the world’s economic superpowers, are arguing with one another about trade tariffs, while the latter is starting to show signs of a slowdown after years of strong growth.
On top of that, Germany, Europe’s biggest economy, has just managed to avoid a recession.
All of this is weighing on sentiment during a time of year when many companies usually start to flirt with investors in anticipation of listing shortly after.
MDZ is.still.here.after.15.years..and.we.are.doing.alright
our.time.will.come..every.dog.will.have.it's.day...