UK IPO Activity Gains Momentum Amid Liquidity Constraints and Investor Caution
London's IPO market shows tentative signs of revival even as investment funds grapple with shrinking liquidity. The case of Shawbrook Group Plc's listing reveals the cautious stance dominating investor psychology—fund managers scrutinize opportunities but hesitate to commit capital amid tax uncertainty and economic headwinds.
Years of outflows from UK equity funds and pension fund divestment have eroded domestic buying power. Where institutional orders once reached £20 million, they now average just £3-5 million. "We thought it was prudent to wait," says Rathbones' Alexandra Jackson, encapsulating the market's risk-averse posture as the Budget looms with potential bank tax hikes.