How have recent UK IPOs been performing in 2021?
Despite the pandemic’s hard-hitting effects, including companies holding off on going public, more firms have been listing in London. We have a look at what companies have listed this year and how they’ve performed.
What you need to know about recent UK IPOs
There were a total of 50 initial public offerings (IPOs) on the London Stock Exchange (LSE) in 2020, 28% more than the 36 of the previous year.1 However, it’s worth noting that the number of listings completed in 2019 was at its lowest level since 2009 as Brexit and the UK general election produced uncertainty.
There have been over 70 IPOs on the LSE in 2021 (as of July of the same year),1 with Q1 marking more IPOs than any other quarter on the stock exchange since 2018.2
It’s worth noting that the aforementioned figures only include companies that opted to go public via the traditional IPO route. Others do this via other channels such as SPAC mergers and direct listings, eg Wise’s July 2021 direct listing.
How to buy or trade newly listed UK stocks
With us, you can invest in or trade most of the stocks that have listed in London using our share dealing platform.
When you invest in a company, you own its underlying shares. As a shareholder, you’d have voting rights and receive dividends (if granted). If you sell your shares when the market price is above the original buy price, you’d make a profit. But if you sell them when the market price is lower than what you bought them at, you’d incur a loss. While potential profits are essentially unlimited, your possible losses on investments are capped at your full initial outlay (excluding any additional fees).
How to sell your shares investment
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- Go to the relevant investment on our share dealing platform
- Select ‘sell’ in the deal ticket
- Choose the number of shares you want to sell
- Close your investment position
You can opt for trading if you don’t want to own a company’s physical shares, but you’d like to take a position on its share price movements. Trading means that you’re speculating on the future share price movement of an asset – whether you believe it’ll fall (going short), or rise (going long).
With us, you’d trade using spread bets and CFDs, which lets you commit only a deposit, called margin, to gain full exposure – this is referred to as leverage. While you’d be able to open your position at a fraction of the full amount, both your potential profits and possible losses will be magnified to the full value of your trade. This makes it important for you to manage your risk properly.
How to go long or short on company shares
- Create an account or log in
- Find a company of your preference on our trading platform
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Choose your position size and take steps to manage your risk
- Open and monitor your position
Five recent UK IPOs: what stocks have listed and how have they performed?
Below we explore some of the largest listings on the LSE’s UK Main Market in 2021.
|Company||IPO date||IPO price||IPO market cap*||Share price (as of 20/08/2021)*||Share price movement from IPO to 20/08/2021|
|1. Deliveroo Holdings||31/03/2021||390p||£7.6 billion||377p||-3.3%|
|2. Dr Martens||29/01/2021||370p||£3.7 billion||397p||+7.3%|
|3. Alphawave IP Group||13/05/2021||410p||£3.1 billion||344p||-16.1%|
|4. Bridgepoint Group||21/07/2021||350p||£2.9 billion||504p||+19.1%|
|5. Darktrace||30/04/2021||250p||£1.7 billion||583p||+133.2%|
* Values are rounded off
Deliveroo Holdings IPO: making headlines for major share price dips
Deliveroo – a food delivery business with operations across the world and its headquarters in the UK – listed as Deliveroo Holdings on 31 March 2021 on the LSE. The company had a valuation of £7.6 billion at the end of its first trading day.
Regardless of the boost in business that the company may have seen as a result of an increased shift to stay-at-home meals during the pandemic, it made headlines for the bearish trend of its share price after its IPO.
But it looks like the food-delivery business could be well on its way to growth and reaching new customers, as planned, as the company’s share price has eventually returned close to its IPO levels. The price per share was set at £3.90 for the IPO – in early August 2021, it came close to this for the first time since the company listed. Reasons for this are said to be the company releasing strong half-year results and the news of German competitor Delivery Hero taking a 5.1% stake in the firm. But, of course, it remains to be seen what the movement will be going forward.
Dr. Martens IPO: global brand meets increased exposure and liquidity
Dr. Martens is a bootmaker that offers different styles of footwear with signature finishes as part of its iconic brand. Its popularity spans across the globe and its IPO was hotly anticipated.
Dr. Martens listed on 29 January 2021 on the LSE. Shares floated at £3.70 and closed at £4.50 after reaching a high of almost £4.55 on its first trading day, at which point the company was valued at £3.7 billion. Since then, and many price fluctuations later, the company’s share price is over 7% higher than the IPO price.
In late 2020, it was reported that the company had sold around 11 million pairs of footwear in over 60 countries in its last fiscal year. Its ‘DOCS’ ticker reflects what the brand’s footwear is known as colloquially.
Alphawave IP Group IPO: fairly new company – a market leader that’s making waves in technology
Alphawave – a semiconductor specialist that develops and licenses connectivity technology which ensures high performance – went public on 13 May 2021. The company’s valuation at the end of its first trading day is said to have been around £3.1 billion.
Founded in 2017, the company is already a market leader with a global customer base. Having been profitable since 2018, its first year of operation, it credited its high quality solutions for this, including faster and more reliable data transfers.
In its LSE IPO, the company’s shares were listed at 410p each on the secondary market. With the price decreasing by 20% on its first trading day, things took a positive turn with a bull run that spanned from the beginning of June to early August 2021. After reaching its peak on 6 August, the price maintained a bearish trend (as of 23 August 2021).
Bridgepoint Group IPO: An investor that you can invest in
Bridgepoint’s July 2021 listing marked the UK’s first major private equity firm listing in close to three decades. This rare listing of a buyout firm saw the company’s market cap reach around £2.9 billion at the end of its first trading day.
Initially hitting the markets at 423p per share, up 21% from the price of 350p that was set for its LSE IPO, this has now surged by a further 19.1% to 504p just one month after listing.
Bridgepoint Group was established in 2000, as a spinoff of the Royal Bank of Scotland Group. Some of the company’s takeovers include HobbyCraft as well as a stake in Burger King franchises.
Darktrace: advanced technology to combat growing threats of the digital age
Darktrace is a cyber security company that makes use of artificial intelligence (AI) to identify threats on networks. With shares initially selling at 250p each, the firm was valued at £1.7 billion in its April 2021 LSE listing.
Even though its IPO market cap was far below the £3 billion it was hoping for, its share price has soared ever since. Reaching 583p (as of 20 August 2021), it increased by 133% since the listing. At the end of July, it hit an all-time high (to date) of around 765p – 206% above its original IPO price. This is a good turn for the company as it has been loss making, albeit trimmed down year on year.
As millions of people switched to remote working due to the Covid-19 lockdown, the company has been particularly successful. It now has north of 5000 customers across more than 100 countries, serviced by over 1500 employees.
What are the risks of investing and trading in an IPO?
All trading and investment activity involves risk. IPOs have additional risks, including:
- Not knowing about information that’s critical to a company’s share price, eg ongoing legal cases and intellectual property that isn’t patent protected
- Little to no trading track record to refer to for informed decision making
- Inflated market expectations that don’t materialise
- A company not meeting its target market cap
It’s vital that you have all the relevant information before you take any position. When trading or investing in IPOs, you’ll find useful information in company prospectuses, admission documents and more.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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