Stock exchange de-listing: Video game corporation accepts a £2.1 billion offer, causing another setback for the London Stock Exchange
In a significant turn of events, Raspberry Pi, the affordable computer supplier, has seen a surge in its shares, with an impressive third jump in early trading, reaching over 390p. This marks a significant increase from its initial public offering price of 280p, which was set just last month.
Meanwhile, another tech company, Keywords Studios, a video games developer currently listed on London's junior Aim market, has accepted a £2.1 billion takeover offer. The offer comes from the Swedish private equity firm EQT, and the takeover will see Keywords Studios being taken private.
The move by Raspberry Pi and Keywords Studios comes amidst a backdrop of the stock market struggling to attract interest from high-growth technology firms. The poor performance of the market has been attributed to a lack of exposure to technology companies, with the UK chip maker Arm Holdings choosing Wall Street over London for its stock market return last year.
Eben Upton, the chief executive of Raspberry Pi, expressed his belief that London has the right calibre and sophistication of investors to support growing technology businesses. However, the trend seems to suggest otherwise, with high-growth technology firms showing a preference to list in New York over London.
Notably, the private equity firm Hg had acquired the majority shares of Keywords Studios in 2021, and this transaction precedes the recent takeover offer. The offer, worth £24.50 a share, is a significant one, and it follows a number of other firms that have delisted from the stock market. Paddy Power-owner Flutter and German-owned Tui are examples of firms that have delisted or moved their main stock market listing.
Amidst this, there is a glimmer of hope for the stock market. Chinese fast-fashion giant Shein is preparing to file for a listing in London, indicating a potential reversal of the trend.
In a separate development, Nick Train, the manager of the UK-focused Finsbury Growth & Income Trust, apologized for the "poor" performance of his portfolio, with the trust's share price total return of 2.7% in the six months to 31 March 2024, compared with 6.9% in the FTSE All Share Index.
As these events unfold, it remains to be seen how the stock market will adapt and attract more high-growth technology firms in the future.
