A single, solitary tech firm listed on the London Stock Exchange’s alternative investment market in the first six months of 2016 – compared to eight in the same period last year – as the Brexit vote adversely impacted the UK technology sector. And the one company that did list, Ethernity Networks, is based in Israel.
“The fewer number of IPOs can be explained by a combination of factors that of course includes Brexit and a general election, but also the fact that many private equity firms are choosing outright sales through secondary buyouts rather than exiting through IPO,” says Dougie Hunter, associate director at Moore Stephens, publisher of the Tech AIM Barometer.
He adds that companies with IPO plans are playing wait-and-see over the terms for Brexit. “Our view is that as the landscape becomes clearer, there will be an increase in the number of tech companies that IPO in early 2018.”