Tech IPOs double 2020 investment figures in record year for London Stock Exchange

Technology initial public offerings (IPOs) raised a record £6.6 billion in 2021, a major study has revealed.

Also known as a stock launch, an IPO is a public offering in which shares of a company are sold to investors.

According to the latest statistics, a total of 37 tech and digital service companies – including food delivery app Deliveroo, greetings card website Moonpig, Fintech Wise, consumer review site Trustpilot, and online marketplace Auction Technology Group – went public last year, raising £6.6 billion between them – more than double that raised in 2020 (£3.1 billion).

Across all IPOs in every sector, the London Stock Exchange (LSE) listed 126 new publicly traded companies in 2021. This includes international firms from Europe, Canada and the US.

Among all 126 firms, some £16.9 billion of IPO capital was raised – the most since 2007.

The data also reveals that the UK is now home to 116 unicorns – firms worth more than $1 billion in value – and 213 futurecorns – high-growth businesses with the potential to reach $1 billion or more in value.

Commenting on the findings, Digital Minister Chris Philp said: “2021 was a brilliant year for UK tech and it’s great to see just how many companies have grown from start-up to scale-up, to finally becoming publicly-listed businesses on the London markets.

“Global investors hold London’s capital markets in high esteem and as we implement clear governance around innovative fast-growth companies, including rules around AI and data, we believe even more companies will appreciate the advantages that listing in London can give them.”

Julia Hoggett, CEO of the LSE, added: “The UK is home to entrepreneurs, innovators and disruptors across a range of sectors, with some particularly remarkable success stories for companies in the technology sector. Last year demonstrated that the London Stock Exchange is increasingly becoming one of the top destinations for these companies and their founders to finance their visions and thrive.”

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Posted in Technology.