The UK takes the top spot as the most popular place to list among technology businesses, according to a survey from leading audit, tax and consulting firm RSM UK*. New figures show over half (53%) of tech businesses with plans to become a public company said the UK was their chosen place to list.
The data also shows nearly half (47%) of businesses would choose to list in the US, while 42% would choose Europe**. Of the businesses surveyed, only 4% said they didn’t have plans to list.
In addition, nearly three-quarters (74%) feel the UK has better access to funding than the US, whether by debt, raising capital or exploring a public listing.
Ben Bilsland, partner and head of technology sector at RSM UK, said: “UK tech is showing a renewed appetite to list on a stock exchange, with London as their chosen destination over the United States. This goes against a prevailing narrative that tech companies will seek to float in the US. It is a positive sign of the strength of the UK as a place to build and grow an innovation-led business, and an indicator of confidence in the future growth of UK tech.”
Diane Craig, partner and head of capital markets at RSM UK, added: “IPO activity has been subdued over the past couple of years, hampered by high interest rates, inflation, and a fall in investor demand. But recent improvements in the economy and rising confidence have meant things have started to look up. New listing rules designed to reduce regulatory red tape are another positive step in helping to kickstart the IPO markets. While it’s clear that listing is still a popular option to raise funds, among UK businesses, they need to be well prepared to ensure a smooth and successful transition.
“The imminent Budget has meant markets have taken another temporary pause. Investors are nervously waiting in case the highly anticipated changes to capital gains tax and inheritance tax come to fruition. Additional tax incentives to encourage the growth of UK businesses would not only assist UK plc, but also the wider economy by supporting jobs and investment. The Budget will give investors clarity so they can then plan accordingly, and whatever the outcome, the markets will continue to recover.”
*RSM UK survey of 301 technology businesses, with a turnover of over £2m conducted between 13 – 20 August 2024. Technology businesses included: software and AI businesses operating across a broad range of sectors including IT, telecoms and finance.
**Respondents were able to select more than one option.