Another snub for the capital’s bourse as London Tunnels heads for Euronext

London Tunnels has announced plans to list on the Euronext in Amsterdam in the latest blow to the London Stock Exchange.

The firm, which has set its sites on redeveloping subterranean wartime tunnels underneath High Holborn, hopes to raise £30m on Euronext, which would value the company at £130m.

Developing the Tunnels to full scale launch will take “a number of years”, London Tunnels said, but it hopes to launch the experience in 2027.

It has secured approval from the City of London Corporation for its plans but is still waiting for the green light from authorities in Camden.

In a statement explaining the rationale for listing in Amsterdam, London Tunnels pointed to the likely costs of its project.

“The Company estimates that approximately £20-30 million will be required over the next 1-2 years, with a further £120 million to bring the Tunnels into operation as a visitor attraction to be funded through debt and equity,” it said.

“The Listing provides the Company with access to the capital markets, which it will use, following receipt
of the planning permission, to commence the detailed feasibility, design and engineering work required
to progress the project towards construction.”

According to the Evening Standard, London Tunnels had been making preparations to list in London towards the end of last year. However, it looked further afield as the stock exchange struggled to attract any major listings.

Angus Murray, chief executive, said: “We believe a public listing of The London Tunnels is the logical next step, improving our ability to raise further capital over the coming years to support the company’s growth strategy and create long-term value.

“The London Tunnels can now take advantage of the size and scale of both the equity capital markets and debt capital markets of Europe. The listing on Euronext, Europe’s largest regulated stock exchange, is in the best long-term interests of the company, its shareholders and the future ambitions for the development of the project in Central London,” Murray continued.

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