Video games developer Keywords Studios has accepted a £2.1 billion takeover offer that will see yet another London-listed firm leave the stock market.
The Dublin-based firm has backed a cash bid worth £24.50 a share from Swedish private equity firm EQT, which will see Keywords Studios being taken private. The firm is currently listed on London's junior Aim market.
The move follows a number of other firms that have delisted from the stock market, adding further pain to the UK with UK-listed firms being bought out or moving abroad.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Paddy Power-owner Flutter, for example, has shifted its main stock market listing to New York, while German-owned Tui signed off a plan to delist from London in February.
Latest Videos FromMoneyWeek
Keywords Studios chairman Don Robert says: "On balance, the board believes that this offer represents a good opportunity for Keywords Studios shareholders to realise value for their investment in cash upfront at a significant premium."
London’s stock market has struggled to attract interest from high-growth technology firms, which have shown a preference to list in New York. Indeed, the London Stock Exchange lost out to the US last year when UK chip maker Arm Holdings chose Wall Street over London for its stock market return.
Fund management veteran Nick Train, manager of the UK-focused Finsbury Growth & Income Trust, recently apologised for the “poor” performance of his portfolio in which he blamed a lack of exposure to technology companies.
The Finsbury Growth & Income Trust is just one example of UK-focused portfolios that have struggled in recent years due to a lack of technology stocks listed in London compared with the rise of the Magnificent 7 in the US.
The investment trust had a 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.
Raspberry Pi and Shein - rays of hope?
There was some good news for the London market last month, however, when the shares of Raspberry Pi jumped a third in early trading on the day the affordable computer supplier began life as a public company.
Raspberry Pi's shares soared over 390p in early trading, well above its initial price offering of 280p, which was announced prior to markets opening.
Eben Upton, chief executive of Raspberry Pi, said at the time: "The quality of the interactions during the marketing process has underlined our belief that London has the right calibre and sophistication of investor to support growing, ambitious technology businesses such as Raspberry Pi.”
Raspberry Pi’s IPO also came amid reports that Chinese fast-fashion giant Shein is preparing to file for a listing in London.
