Zilch, the fintech firm backed by eBay, has threatened to list abroad if the UK government fails to boost the market and drive greater investment for tech firms.
Boss Philip Belamant claimed the payments firm was holding off on listing in London until it saw evidence of government policies aimed at creating “liquidity and excitement around IPOs”.
It came on the same day the London company secured £100 million in debt financing from Deutsche Bank, in what the company said was a “precursor” for an IPO.
Before Zilch begins with the next steps, Belamant said management is waiting to see “pension funds investing in high-growth British companies” and “incentives for retail investors to buy and hold British stocks”.
He added: “If this all happens, I’m not sure why you wouldn’t want to list on the LSE . . . But of course, if it doesn’t happen, then we have to take the appropriate decision and that might be to go somewhere else.”
London has seen an exodus of large companies from its stock exchange, either through being taken private or moving over to the US in search of better valuations and stronger liquidity.
FTSE 100 firm Ashtead was one of the most recent groups to set its sights on the US, with directors concerned over its “significant” valuation gap compared to its Stateside rivals.
On Tuesday, shares in the plant hire giant tumbled close to 2% after it reported lower revenue growth than expected and a drop in annual profit due to higher interest payments.