Deliveroo And Other IPOs Lined Up for LSE Debut

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Summary

• Investing in IPOs could be really rewarding if you invest in the right businesses and companies.
• The Boris Johnson government, post-Brexit is making all efforts to attract blank-check firms and tech unicorns.
• The European and UK stock exchanges have managed to raise more than $10 billion through several IPO’s so far in 2021.

The pandemic had weighed down heavily on the London IPO market in 2020. The fresh listings were significantly down in 2020 due to prevalent uncertainties along with a poor economic outlook in terms of Brexit, and coronavirus pandemic. Calisen and The Hut Group were the only two IPOs that had attained a valuation of over £1 billion upon listing in 2020.

However, the UK and European IPO markets seem to have picked up the steam. The stock market seems to have witnessed a strong start in 2021, buoyed by businesses having a virtual presence that have scaled up to new heights during the pandemic led lockdowns.

According to data firm EODHD/Others, the European and UK stock exchanges have managed to raise more than $10 billion through several IPOs so far this year. More than 66 per cent of the fresh listings constituted of gaming businesses and e-commerce companies such as Moonpig, UK-based leading online card retailer.

Although the trade pundits feared that the UK IPO market could suffer from Brexit and lose listings to EU bourses, however, the IPO market on the London Stock Exchange has been resilient so far. In addition, the British government want London to maintain its image as a financial hub in the region post-Brexit. Notably, IPOs are important for stock markets as they provide depth to the stock market.

Therefore, the British government has eased the process of IPO listing in order to attract technology businesses and SPACs that would allow London to retain its position as Europe’s pre-eminent financial hub and compete with world’s leading stock markets post-Brexit.

Investing in IPOs could be really rewarding if the business is profitable. Therefore, it is better to seek professional advice before putting your money into fresh listings.  In this article, we would put our lens through 5 upcoming IPO’s in the year 2021.

Also read: Top 5 AIM stocks to look for in 2021

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1. Deliveroo

Food-delivery company Deliveroo plans an initial public offering in London and expects to attain a valuation of $10 billion; however, the firm date for Deliveroo’s IPO has not been officially announced yet but is expected to be in the next few weeks.

The Amazon-backed food delivery service, Deliveroo, revealed a 54 per cent growth in sales coupled with losses of £224 million in 2020. The company has aggregated more than 115,000 restaurants and stores that cater to more than 6 million people every month.

In 2020, the gross transaction value rose by 64 per cent to £4.1 billion, driven by increased customers and more frequent usage by people trying online deliveries for the first time during the pandemic led lockdowns.

2. PensionBee

Founded by Romina Savova, the financial technology start-up aims to list on the High Growth Segment of the LSE in 2021. The admission is expected to take place later this year. With US bank State Street being the biggest external shareholder of the fintech company, nearly two-third of the company is owned by management and staff.

PensionBee allows you to manage your pensions through an online account which shows you your current pot size and retirement income projections. Since its inception in 2014, PensionBee has signed up nearly 120 thousand users to its pension consolidation platform. PensionBee reported a strong 77 per cent rise in revenue to £6.3 million as people resorted to online channels to manage their money during the pandemic in 2020.

3. In The Style

Budget fashion e-commerce retailer In The Style is expected to go public on the AIM segment of the London Stock Exchange by mid-March. The eight-year-old online retailer specialising in clothing for young women anticipates a valuation of £100 million, according to some media reports.

In a bid to drive up sales and customer engagement, the fashion retailer forged long-term contracts with fashion influencers and collaboratively designs, developed and promoted the branded fashion clothing. The year 2020 has been a good year for the company as it recorded strong Black Friday and Christmas sales.

During the 13-week period ended 31 December 2020, the online fashion retailer’s sales recorded a growth of 169 per cent year on year to £13.5 million. New customers and e-commerce order volumes grew by 45 per cent and 95 per cent year-on-year, respectively, during the period.

4. AMTE Power

Battery cell maker AMTE Power expects to raise around £7 million through a fresh listing on the AIM segment of the London Stock Exchange in March. Founded in 2013, the battery cell maker is involved in the making of lithium-ion and lithium-ion derivative battery cells to create a rechargeable energy storage system (ESS) that are used in microgrids and larger systems.

The funds from the IPO listing would be directed to fund the development and production of its product offerings. Notably, the company is chalking out plans along with the UK government to develop a British Gigafactory.

5. TinyBuild Inc

US-based indie games developer TinyBuild Inc aims for a fresh listing on the London’s AIM market by the mid of this month. The Seattle-based game developer is drawing up plans to list in London under the ticker symbol 'TBLD' and aims to capitalize on the momentum of the recent IPO boom on the London market.
The gaming sector is expected to reap the benefits of lessened competition as Codemasters (LON:CDM) was acquired by Electronic Arts and attain a valuation of more than £300 million through a stock market flotation in London.   

Since its inception in 2013, TinyBuild has published 40 games and has 23 new titles scheduled for release slated for upcoming years.