Two British high-tech companies are considering listing in New York, a blow to the London Stock Exchange at a time when the city's role as a financial services center changes after Brexit.
Immunocore, a domestic British biotech company that closed a $ 75 million financing round last week, has filed for a listing on the Nasdaq
Election of New York over London for an initial public offering of $ 100 million.
Immunocore, which has raised a total of $ 873.2 million since its inception, has partnered with the drug AstraZeneca
and Eli Lilly and Company
including through his cancer drugs and the Bill & Melinda Gates Foundation.
Blue Prism follows
A London-listed software company specializing in the automation of robotic processes that first stated in November 2020 that it had started considering a listing in the US, with a secondary listing outside of London. The company is currently listed on the London Junior AIM Stock Exchange.
In a report in the Times on Monday, Blue Prism chief executive Jason Kingdon said the company was considering listing in the US because Americans value subscription software companies more than British investors, who he said do not have have the same knowledge of the sector.
Kingdon also said the London market was "too illiquid and too small".
Blue Prism was down 5% in London trading on Monday. The company posted revenue growth for the fifth consecutive year in the twelve months ended October 2020, reducing its operating loss by around £ 10 million ($ 13.6 million) year over year to £ 81.6 million.
Continue reading: The UK and EU face the financial services showdown
These two UK high tech companies are watching US markets as the global role of the London Stock Exchange changes after the UK leaves the European Union.
After the end of the Brexit transition period on January 1, European equity trading, valued at around $ 8 billion per day, was largely shifted from London to the continental stock exchanges in Paris and Amsterdam.
Financial services were not covered by the post-Brexit trade deal agreed by the UK and the EU, and London financial professionals quoted by Financial News have announced that they do not expect an agreement on financial services for a few years.
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Immunocore and Blue Prism aren't the only UK high tech companies looking outside of London.
The London-listed food supplier Just Eat Takeaway
said on Jan. 12 that it was pausing its decision to list in London only.
Following the merger of Danish Just Eat and Dutch Takeaway.com in early 2020, the combined company had planned to delist its Amsterdam stake in late February 2021 in favor of listing only in London.
Just Eat Takeaway has changed its mindset with the planned acquisition of a US colleague, Grubhub, which is expected to be completed in mid-2021.
The company said it will "include liquidity and trading volume in the Amsterdam, London and New York listings, among other things, which will take some time to find a natural home after a major acquisition like Grubhub."
It's not all bad news for London. Grocery shipping company Deliveroo is gearing up to be listed in London for what may be the UK's largest IPO in two years. The company announced on Sunday that it had completed a new round of donations and valued the company at more than $ 7 billion.
Online greeting card retailer Moonpig last week announced plans for an IPO in London that could be worth around $ 1.4 billion. Just a few hours earlier, Dr. Martens that an IPO in London will be sought. According to analysts, the legendary shoe and boot manufacturer is worth around 4 billion US dollars.