Chancellor Rachel Reeves will pitch to London Stock Exchange flotation candidates alongside one of the City’s top bankers, in her bid to revive interest in the struggling UK market.
First reported by Sky News, Reeves and Lucy Rugby, the newly appointed City minister, will host a group of company bosses on Monday to discuss “the UK IPO environment” according to a copy of the invitation.
The round table discussion will “include introductory remarks from ministers and an overview of the market environment from Anthony Gutman, Goldman Sachs”
Executives from other sectors will also be in attendance.
The identities of the companies and executives attending the meeting on Monday have not been released by the Treasury, who are keeping them close for commercial confidentiality reasons.
Gutman is one of the City’s leading investment bankers, holding a senior global role at the Wall Street bank.
He has also worked on many of the UK’s largest takeover deals and IPOs.
One competitor described it as “highly unusual” for Goldman Sachs to give a free pitch to potential IPO candidates alongside a senior government minister.
IPO influx a high priority
In the invitation, the Treasury acknowledged the issue of London’s attractiveness as a listing venue was a “high priority for the government”.
It said: “Ministers are keen to hear your views on the attractiveness of the UK as a listing destination for firms…and on the extensive package of reforms the government has undertaken to boost the competitiveness of UK capital markets.”
The meeting takes place amid an encouraging time for capital, with both Beauty Tech Group and tinned tuna producer, Princes, confirming IPO ambitions over the last few weeks.
Meanwhile, specialist lender bank, Shawbrook Group also unveiled its intention to float.
One source said the chancellor could use the meeting to address questions and rumours about a possible stamp duty exemption for newly listed shares, which was reported to be under consideration by Treasury officials.
Abolish levies
City figures have been urging the government to consider abolishing stamp duty for some time, and are appealing for the Treasury to go further.
Andrew Bresler, chief executive of Saxo UK said: “Stamp duty on share trading should be abolished across the board if the UK is serious about revitalising its capital markets.
The UK is now an outlier internationally, with very few other markets applying such a levy.
Comprehensive removal of stamp duty is needed to support the long-term health of the City and restore confidence in London as a leading global listings venue.”
London has fallen behind numerous international rivals in terms of the proceeds raised from IPOs, and increasing doubts have been raised on the City’s appeal for companies.