Almost two thirds of UK tech and media businesses planning on going public would still choose listing in London over New York or mainland Europe, despite fears that the City’s appeal is waning, according to a new survey.
The survey by RSM of businesses that currently have plans to list found London is still by far the most popular IPO location.
But the fact a third of businesses did not select London as a place they are considering an IPO, with Europe rather than the US the next most popular destination, suggests there is still work to be done to ensure the City holds onto the top local tech firms.
Chip firm Arm's high-profile decision to list in the US rather than the UK earlier this year stoked fears about the City's appeal for top tech firms.
Ben Bilsland, partner at RSM UK, said: “We have seen a trend of UK tech companies in particular looking to the United States to IPO, highlighting concerns that more needs to be done to avoid UK plc falling behind its competitors. However, this middle-market confidence in the UK is an encouraging sign.”
The survey also suggested the appeal of London goes beyond proximity. Six in ten bosses said the UK was a better place to gain access to funding - whether by debt, raising capital or exploring a public listing - than the US.
But many in the City still feel more needs to be done to ensure London remains a top listing destination. The Chancellor’s Autumn Statement last week included some measures to boost the attractiveness of listing in London, including new UK-specific prospectus rules to create a “more agile and simplified regime”.
