British chip designer Arm recently decided to list in New York, leading to worries that London will miss out on more blockbuster tech IPOs.
Investors largely blamed the legally uncertain nature of Deliveroo's business — the company relies on couriers on gig contracts to deliver meals and groceries to customers. That has been the subject of concern as these workers look to gain recognition as staffers with a minimum wage and other benefits.
"It's not the exchange, it's the people who trade on the exchange," Hussein Kanji, founding partner at London VC firm Hoxton Ventures, told CNBC. "I think they're looking for dividend-yielding stocks, not looking for high-growth stocks." Numerous tech firms listed on the London Stock Exchange in 2021, in moves that buoyed investor hopes for more major tech names to start appearing in the blue-chipHowever, firms that have taken this route have seen their shares punished as a result. Since Deliveroo's March 2021 IPO, the firm's stock has plummeted dramatically, slumping over 70% from the £3.90 it priced its shares at.
"London is creating, and the U.K. is creating, globally important businesses — Arm is a globally important business. The issue is that the London capital market is not efficient, essentially."The 'B' wordplunged by more than 90% in 2022
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