Discussion between Treasury and Fintech Billion-Dollar Startups Regarding London Initial Public Offering Opportunities
Out with the Old, In with the New: The City Minister's Push for Fintech Unicorns IPOs in London
The City minister is pulling out all the stops to woo some of Britain's hottest financial tech firms, like Monzo, ClearScore, OakNorth, Revolut, and others, to list in London as unicorns. And it looks like the charm offensive is paying off.
Sources close to the situation reveal that Emma Reynolds, Economic Secretary to the Treasury, recently held meetings with executives from these firms, including Antony Jenkins, the former Barclays CEO and founder of 10x Banking Technologies. The summit comes as the London Stock Exchange (LSE) scrambles to draw attention with prominent new listings, given the recent takeover bids for Deliveroo and Darktrace.
In the midst of a frenetic race to become the go-to global hub for startups and scale-ups, the Treasury has been making inroads by easing regulations, trimming red tape, and ensuring businesses have the capital they need to flourish under its industrial strategy. The LSE and other key market regulators and institutions, such as Dame Julia Hoggett, CEO of the LSE, and the Financial Conduct Authority, have joined the party to coordinate efforts and ramp up London's appeal as a listing destination.
However, London—once the heart of the IPO action—is losing its luster as city after city becomes the chosen venue for tech listings. For instance, Revolut, valued at $45bn, is rumored to be more inclined to list in New York in the coming years. But, in a hopeful sign, Monzo, the UK's seventh-largest bank, is reportedly eyeing a London listing as early as the first half of next year, with investment banks like Morgan Stanley onboard to roll out the red carpet.
But London isn't giving up without a fight. The LSE is eager to secure coveted fintech listings, like Monzo and Revolut, as a way to revitalize the market and shake off perceptions of stagnation after losses such as the ARM chip designer's listing on Nasdaq last year. Other fintech companies, such as Zopa Bank, have tapped into investor appetite for fintech assets in London with bond listings on the LSE, but many firms remain focused on building their businesses before taking the IPO plunge.
Stay tuned for more updates on the ever-evolving fintech landscape in London, as we continue to keep you abreast of the latest developments and government initiatives. If you're a fintech fanatic, don't forget to subscribe to our newsletter for real-time updates on the hottest firms and the folks driving the fintech revolution.
[1] Sky News: UK Treasury targets fintech unicorns for stock market listings[2] City A.M.: UK's fintech unicorns: Treasury wooing banks to float on the London Stock Exchange[3] Finance Magnates: Fintech revolution: Zopa Bank's £200m bond could pave the way for IPOs[4] UK Department for Business and Trade: Fintech sector[5] Financial Conduct Authority: Innovation hubsJob vacancies fall - as employers hit with higher costs
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- Amidst the competition to secure fintech unicorns for stock market listings, there seems to be concern that war might be brewing between London and other cities, particularly New York, as Revolut appears more inclined towards a New York listing.
- As the Treasury eases finance regulations and encourages growth, businessmen like Antony Jenkins are met by the City Minister to discuss potential initial public offerings (IPOs) in London's finance sector, which could boost the finances of various businesses.
