London’s struggling IPO market has suffered another blow with Special Opportunities REIT failing to attract the minimum investment required to go ahead with the listing.
Special Opps had aimed to raise £500 million, which would have made it the largest new issue funding this year so far. But having failed to reach the minimum, it decided that implementing its strategy in private was the better option.
The trust planned to use the money raised to invest in commercial properties affected by people working from home and where it hoped it could strike a good deal from owners keen to sell up.
Special Opps had already received funding guarantees worth £104 million from GoldenTree Asset Management, TR Property Investment Trust and Columbia Threadneedle, leaving £146 million minimum to find.
The trust would have been the first property REIT to list in London since 2021.
Wednesday's move follows signs that London’s new issues market might have reached the bottom.
Entry-level computer maker Raspberry Pi stormed to a huge premium on its debut yesterday, while hops are growing that fast clothing group Shein will soon confirm its much-reported US$50 billion IPO in the UK.