Downturn fears cut London floats by 59pc

JUST 14 companies have floated in London in 2019, the slowest start to the year since the height of the financial crisis as political uncertainty and fears of economic downturn deter firms.

The total is 59pc lower than the same period last year, according to figures compiled by Dealogic for The Daily Telegraph. The listings raised $3.1bn (£2.4bn), 41pc less than last year and a far cry from the boom year of 2014 when the total hit $22.6bn (£18bn).

Companies that defied the trend include law firm DWF and Watches of Switzerland. Cafe and bar operator Loungers unveiled an £83m float in April on London’s junior AIM market.

David Madden, analyst at CMC Markets, said: “Concerns about a global slowdown, the Us-china trade war and the threat of a no-deal exit from the European Union are likely to put companies off pursuing any listings until at least after the Brexit deadline in October. The lack of clarity over the outcome means that a lot of business expansion and investment is on hold. No company will make the leap at such an uncertain time.”

The poor performance of listings such as Aston Martin and Funding Circle have also raised doubts, with both companies having lost about half their value since going public.

Companies that have delayed or pulled London float plans include the Spanish-owned mobile operator O2, and Saudi Arabia’s state oil behemoth Aramco, which raised $12bn in a bond market debut this year instead.

The latest companies to announce London listings are Swiss Re, which confirmed a £3.5bn float of its UK life insurance business, and Airtel Africa, which aims to raise $750m by floating at least 25pc of its shares on the LSE’S main market.

Rail app business Trainline has also recently confirmed plans to raise at least £75m in a float that could value it at £1.5bn.