London Needs A Tech IPO Hit To Forget Its Deliveroo Debacle
A listing of cybersecurity firm Darktrace has to go well if the city hopes to attract more high-growth tech startups.
A looming threat.
Source: Bloomberg
London is finally getting a proper test of its appetite for loss-making, high-growth technology stocks. The impending initial public offering of cybersecurity startup Darktrace Plc fulfills many of the criteria that much-hyped Deliveroo Holdings Plc didnât, but investors are still being asked to overlook some issues that would likely be less of a concern in the U.S.
Deliverooâs experience made it harder to gauge U.K. investorsâ enthusiasm for growth companies. They balked at the dual-class shares, which gave Chief Executive Officer Will Shu control over the food delivery company, and the businessâs dependence on poorly paid gig workers. Its market debut was a disaster, and the stock continues to trade 30% below its listing price.