London firm Mishcon de Reya has shelved plans to float on the stock exchange ‘for the foreseeable future’. The firm has spent more than a year exploring an initial public offering, which had the potential to create the most valuable legal business on the London market.
But doubts about the potential IPO emerged earlier this year as partners deemed that the market was too volatile. Now the idea has been scrapped indefinitely – although the firm today insisted that reports of the flotation being abandoned are not accurate.
A spokesperson said: ‘We can confirm that we have decided to put our IPO plans on hold for the foreseeable future due to market conditions. We remain an ambitious and bold business with a clear strategy and vision for our future.’
The firm announced in April 2021 that it had mandated investment bank J.P.Morgan Cazenove to advise on a possible float, which was intended to take place by the end of last year. Every staff member was to become a shareholder in the business, which was reported to be valued at £750m.
But market conditions appear to have spooked those behind the plan, who may also have viewed other listed firms’ fluctuating fortunes with apprehension.
The likes of Ince, whose shares have fallen 76% in a year, and Knights, down 67% year-on-year, have struggled to hold their value, while others reported significant falls during the pandemic.
No major law firms have listed since DWF in early 2019, despite speculation about several businesses and suggestions from market analysts that there might be a rush from the legal profession to seek investment through an IPO.
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