Rumoured Raspberry Pi, Shein and Boots IPOs – what investors need to know?

A lack of IPOs had been sowing doubt and disappointment through London’s financial centre.

However, the recent record rally of the UK market has covered London in a fresh coat of positivity and more London listings now seem to be on the cards.

Computer manufacturer Raspberry Pi is rumoured to be seeking a listing on the main market of the London Stock Exchange. And it’s not the only one, rumours of Shein and Boots IPOs are also swirling.

Are London IPOs back on the map?

The decision of Raspberry Pi to launch in London marks a significant step forward. It’s showing that wider efforts to persuade more companies to list in the UK are now bearing fruit.

It represents a coup for London, particularly given the reputation the UK is trying to foster as a breeding ground for tech startups. With the company now stating its intention to list, it’ll be all systems go to get the IPO off the ground.

Ministers will be keen to notch this up as a win, and proof in the pudding of their attempts to woo companies to London.

With the biggest change to UK listings rules in almost 40 years soon coming into play, London Stock Exchange Plc CEO Julia Hoggett says there’s more in the pipeline for new listings than there has been for some time.

With interest rate cuts on the horizon also likely to help improve sentiment, the focus now will be on which companies could be next.

Investing in IPOs, share offers, and individual companies isn’t right for everyone. It’s a higher-risk way to invest your money. When a company first lists on the stock market, its share price can rise and fall quickly. If the company fails, you could lose your whole investment. You should make sure you understand the companies you’re investing in and their specific risks. You should also make sure any shares you own are part of a diversified portfolio. If you’re not sure if an investment’s right for you, ask for personal financial advice.

Shein

Fast-fashion giant Shein is rumoured to be mulling a listing.

While New York still holds immense pulling power and is likely to be its first choice, plans for a listing there look set to be blocked by regulators. This is over its ties to China and questions raised over its supply chain.

London looks set to be the second-choice destination and, while this would be a boost for the city, is likely to present deep ESG issues for investors to navigate.

Shein has come under significant criticism for the huge volumes of cheap clothes it produces, the lack of transparency in its supply chain and its appropriation of other designers’ work. Given these concerns, investors could be wary if ESG is in their priority list.

Boots

There’s also been plenty of speculation about a potential Boots IPO, but recent rumours have focused on the potential for a private sale instead. US-based Walgreens Boots Alliance has long been looking to offload the retailer, which is a stalwart of the UK high street.

Boots has been bending the way the retail winds are blowing by reducing the footprint of its physical stores amid the continued shift to online shopping. Its strategy of delivering more offers on its own brand products, also seems to have been paying off.

There’s still a chance that instead of a private equity auction, a listing could be on the cards. Consumer awareness of the Boots brand, with its rich 174-year history, is higher in the UK compared to the US, so London might make more sense for a listing.