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IPOs

There are fundamental problems with IPOs

The way banks win mandates, the allocation to larger investors and the exit strategies of private equity have made investors wary of new listings

Off track: Sparks fly from Aston Martin Red Bull's car in the Abu Dhabi Grand Prix in November. The carmaker's shares dropped after its October IPO
Off track: Sparks fly from Aston Martin Red Bull's car in the Abu Dhabi Grand Prix in November. The carmaker's shares dropped after its October IPO Photo: Getty Images

Regulators and stock exchange officials should be far more concerned about the decline in market efficiency for initial public offerings in the UK than they are.

Only one of the seven companies that listed on the main market in the third quarter of 2018 has grown since its IPO. On average, the other six companies have reported a 23% share price fall.

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