Market Report: Worldpay successfully bucks London's IPO trend

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The flotation of Worldpay is starting to look more impressive by the day.

It could so easily have gone the way of First Data, another payments-processing company, which flopped on debut in New York yesterday in the year’s largest listing.

Worldpay jumped 10% on its first stock-market outing on Tuesday with the valuation racing past £5 billion — the fact it didn’t drop its offer price was a triumph in itself.

The company’s shares dipped by 0.5p to 260p today as retail investors began trading after institutions made a killing.

Worldpay looks like a one-off in what has been a tough year to go public.

City sources had hinted that the IPO floodgates would open after the election, but market volatility appears to have put a number of new issues on ice. Cambridge-based Acacia Pharma pulled plans to raise £150 million through an IPO.

There have been 93 listings on the London Stock Exchange this year raising £5.3 billion — half the level of 2014 from 136 floats.

Car insurer Hastings floated on Monday at 170p a share but quickly slammed into reverse. It recovered 1.5p today to 165p. 

The tough conditions haven’t put off retirement home builder McCarthy & Stone, which laid out the blueprint for its £1 billion flotation on Wednesday, while across the pond Ferrari is revving up for its float, along with mobile payments firm Square.

London-listed stocks seem set to finish the week on a high with the FTSE 100 up 36.32 points at 6374.99 as a US interest-rate rise looks increasingly distant.

Investors gobbled up supermarket shares after healthy, third-quarter numbers from French giant Carrefour.

Tesco rose 4.35p to 196.5p, Sainsbury’s gained 4.5p to 265.5p while Morrisons put on 2.2p at 175.9p after a sell-off this week.

Burberry’s woes continued, down 17p to 1285p as rival Hugo Boss followed its lead by slashing profit guidance after a slowdown in Chinese spending

Doorstep lender Provident Financial picked up 140p to 3318p after a strong third quarter from Vanquis Bank.

On AIM, delays at the Humpback well hurt Falkland Oil & Gas, which tumbled 1.15p to 22.85p.

Meanwhile, Old Street-based 7digital, 0.03p cheaper at 10.6p, was picked as the supplier to the new music-streaming service Electric Jukebox, launched this week by Britain’s Got Talent judge Alesha Dixon.

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October 16, 2015 |
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