Burger King UK’s £600million flotation is understood to have stalled because of investor nerves over the conflict in Ukraine.
Plans to list the UK division of the world’s second-largest hamburger chain on the London Stock Exchange have been slowed by the hostilities, City sources said.
The firm has not formally announced plans, but has hired bankers at Investec, Peel Hunt and Bank of America to advise on a listing. It had even begun to court investors. It is understood Bridgepoint, the private equity owner of Burger King UK, was planning to float before July.
Sign of the times: Plans to list the UK division of the world’s second-largest hamburger chain on the London Stock Exchange have been slowed by the hostilities
But two sources familiar with the process told The Mail on Sunday plans had been disrupted. One said: ‘It’s been delayed, but not indefinitely. It’s market conditions. You have such a big sell-off. The sentiment right now is really difficult.’
A third source insisted last night that the float could still be completed by the end of June.
Other listings may be affected too. New Day, which issues one-sixth of the UK’s credit cards, is understood to be holding off until market turbulence settles. The FTSE 100 index yoyo-ed last week and the pound fell against the dollar as Russia invaded Ukraine. The price of oil shot up past $105 (£78) a barrel. A senior City source said: ‘There’s been a stock market rout since the start of January. It has accelerated with the invasion.’
The world’s biggest law firm, Mishcon de Reya, said last month it was delaying its float due to choppy markets and investor jitters. The London Stock Exchange and the Government are attempting to attract more high-profile listings.
Last year, the Government commissioned an overhaul of listing rules to lure more companies after the UK won just 5 per cent of initial public offerings between 2015 and 2020.
Burger King UK and its owner Bridgepoint declined to comment.
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