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Green shoots appear in the IPO market
The initial public offerings (IPO) market is showing some signs of life with two initially successful recent listings.
Up until these issues it had been a relatively quiet market with just eight new listings completed, which raised around £455m in new funds.
Then on 29 May JDE Peet successfully raised €2.25bn to complete Europe’s largest IPO since 2018. It certainly helped that private owner, JAB Holdings managed to secure cornerstone investors who collectively contributed €761m of funding.
What was interesting and different about the IPO was that the roadshow was conducted virtually over three days rather than the normal two-weeks of on-the-road marketing across multiple capital cities across Europe. This might become the ‘blueprint’ for future IPOs encouraging more firms to consider the virtual roadshow.
The company’s brands include Douwe Egberts, Kenco and Peet’s Coffee, a chain of coffee shops. The shares got off to a flying start and trade 20% higher than the €31.5 listing price giving the group a market capitalisation of €17bn.
Meanwhile on 2 June Trident Resources (TRR:AIM) shares jumped over 20% to 23.5p after it made its debut on the AIM market, raising £16m of new funds. It plans to establish itself as a diversified mining royalty company.