Government holds talks over revitalising flat IPO market
CITY AT WAR
HERMES, the investment house, has held discussions with the government over the way banks are paid for managing stock market floats.
The investor wants a portion of the fees paid to banks to be withheld for several years and released only if the flotation is deemed a success.
The meetings with the department for business are the latest attempt by a key City player to revitalise London’s market for initial public offers (IPOs).
Last month, a special investigation by City A.M. revealed that key players in the IPO market were effectively at war, with boutique advisers STJ accusing book-runners of talking down the price of companies.
Unrest in the City was first exposed in a scathing letter sent by investment giant BlackRock about the state of the London IPO market.