UK financial software company Misys is now eyeing up New York as a possible listing venue for an IPO that was previously destined for London.
Initially, Misys had a £5.5bn float in place on the London Stock Exchange, but the IPO was withdrawn amid Brexit fears and market instability.
The change of direction will be of concern to many as the current market is yet to pick up following the Brexit vote, not indicative of confidence in a Britain separate from the EU. Had the plan gone ahead, the plan would have been one of London’s most substantial stock market IPOs of the year.
The company has shown a growing interest in putting down roots in the U.S., having recently announced plans to take up new offices in Manhattan. Founded in London in 1979, Mysis was listed in the UK until 2012 when it became private.
The seeming extraction of this company from London aligns with the recent UK fall in the IPO rankings, now down to fifth place. The situation has prompted a recent proposal by The Financial Conduct Authority to reform IPO rules.
A recent report conducted by job search marketplace Hired outlined the Brexit immigration implications as an integral risk factor for the tech industry, as Britain is not currently producing enough tech talent to meet the demand of the industry at present.
Mehul Patel, CEO of Hired said: “The UK has seen flat or declining engineering graduates over the last couple of decades”. This indicates that an effort must be made to influence the general culture surrounding tech in Britain, encouraging careers and raising awareness to its importance.
However there is a counterargument, with high profile figures such as the CEO of Apple, Tim Cook showing confidence in Britain’s ability to thrive after Brexit, who has expressed a commitment to setting up a new HQ in Battersea.