War in the Middle East could put the brakes on a long-awaited flood of stock market listings in London in a major setback for the City.
Online travel agent Loveholidays is said to be preparing to delay its £1billion flotation amid the market turmoil and disruption to travel caused by the conflict with Iran.
The company – majority-owned by buyout group Livingbridge – was expected to announce its plans to float this month but now may move this to after Easter, according to the Financial Times.
This follows reports that Norwegian software firm Visma may delay its plans for a £16.5billion float amid a sell-off of software stocks caused by anxiety over the rise of AI rivals.
It is feared other companies planning to list in London may follow suit – putting a dampener on hopes that the City is poised to bounce back.
City commentator David Buik said: ‘It is hardly surprising companies may want to delay IPOs in the current climate and more may follow suit.
‘Market conditions need to be perfect for a successful IPO and they are a million miles off the pace.’
Cancelled: Online travel agent Loveholidays is said to be preparing to delay its £1bn flotation amid the market turmoil and disruption to travel caused by the conflict with Iran
There had been growing optimism of a revival in initial public offerings (IPOs) this year after major listings last year included tinned tuna firm Princes Group and the specialist lender Shawbrook.
Among those said to be eyeing a London float are RAC, Waterstones and Monzo.
A revival in listings would boost the stock market amid an exodus of firms through takeovers and defections elsewhere, particularly to New York.
Foreign takeovers of British firms rose to a four-year high of £65billion last year amid fears that British companies are being sold on the cheap – hollowing out the stock market and handing lucrative returns to foreign owners.
Lloyd’s of London underwriter Beazley this week agreed to be taken over by Zurich Insurance in a deal worth £8.1billion, while aerospace supplier Senior is being circled by overseas predators after a joint bid from US investment firms Tinicum and Blackstone.
Doubts over Loveholidays’ plans come as holiday companies face disruption because of war in the Middle East, with flights cancelled and travellers staying away from the region.
Airline shares have been hard-hit, with British Airways owner IAG and Easyjet nursing heavy losses.
Chris Beauchamp at IG, said: ‘The delay is certainly unwelcome news for London, yet another casualty of the geopolitical madness that is 2026.
There’s hope that things can get back on track if the conflict abates, but more delays to the IPO pipeline will not help London’s quest to polish its appeal as an IPO destination.’
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