A lot was riding on Shein’s plans to float in London. Too much, probably. The Asian e-commerce giant’s IPO was set to be the UK’s biggest in years, and was seen as our best bet to revive the market.
But plans changed, and Hong Kong now looks the likely home.
Is that such a loss to London? Some of Shein’s shortcomings were well-documented (hint: no Amnesty International award is forthcoming) and others may yet surface. More could have gone wrong than gone right. It could have set an example – or, it could have set an example.
What’s much more alarming is the lack of home-grown tech that’s joining our public markets. I can list off half a dozen London tech unicorns who have talked about listing – for about three years now. The number of times they’ve talked about it could itself fill a 90-page prospectus – and still nothing happens.
But there is at least one company getting ready for a float: New Prince’s Group. If you’re not familiar, this is the firm behind the tins of corned beef, jars of sardine paste and cans of Branston’s baked beans you might spot in Sainsbury’s. Not exactly gourmet stuff, but dependable staples, and this stock will become a dependable staple of the FTSE 250 if it pulls off its planned £700m float.
The firm, which can trace its roots back to Liverpool in the 1880s, already turns over nearly £2bn a year. It was acquired last year by Italian firm Newlat Food, which this week struck a deal to acquire the Italian operations of FTSE 100 stalwart Diageo, a deal which is expected to close later in the year.
The flotation would be a rare win for London, given the firm is currently listed in Italy – and bankers working on the deal tell me it is likely to go ahead pretty soon.
It’s not just shiny tech firms but solid businesses from stable sectors like New Prince’s that London will have to keep welcoming if it is to survive. And if it doesn’t, we’ll all be poorer for it.
A thriving stock market brings wealth and prosperity to more than just its constituents.
But a flailing one? That could confine us to a life of corned beef, sardine paste and baked beans. What’s it to be?
