Connect with us

Business

New London IPOs hit 28-year low amid AstraZeneca exit concerns

Published

on



London marked the slowest first half-year for IPO volume since 1997, a grim milestone punctuated by a report that AstraZeneca Plc’s chief executive officer wants to move the company’s listing to the US.

With companies going where liquidity is abundant, a steady drip of firms being taken private, and too few initial public offerings coming along to replace them, pressure is mounting to reverse the slow but inexorable shrinking of London’s historic trading venue. More than $100 billion worth of London-listed companies have announced or executed plans to move to New York in recent years, Bloomberg calculations show.

AstraZeneca CEO Pascal Soriot wants to move the drugmaker’s stock listing to the US, the Times reported Monday, citing his frustration with the UK’s regulatory regime for drugs and concern that the country’s life sciences industry is falling behind the US and China. An exit from the exchange by the most valuable British company would send shockwaves across the financial sector, and risk inviting more firms to join the confidence-eroding flow of listings leaving the City.

That would make the job of attracting new IPOs even harder. Companies listing in London raised less than £200 million ($274 million) in the last six months, according to data compiled by Bloomberg, and turnover for stocks like AstraZeneca is far greater for its US depositary receipts than in London.

A move by AstraZeneca would accelerate the fearsome trend of companies voluntarily moving their listings to the US. Wise Plc is the latest of the bunch, revealing last month it would relocate its primary listing to New York in search of better liquidity and new investors, following in the footsteps of Flutter Entertainment Plc, CRH Plc and Indivior Plc.

Just as concerning is a trend toward UK-listed companies receiving takeover offers this year, potentially removing them from the exchange. Spectris Plc, Deliveroo Plc, and Assura Plc are among the 48 pending or completed deals since January 1 targeting London-traded firms, data compiled by Bloomberg show.

“The scale of M&A and lack of IPOs is resulting in a material reduction in the number of UK-listed growth companies,” Charles Hall, head of research at Peel Hunt said in a research note. “We are seeing continued outflows of UK capital, which need to be addressed through pension, ISA, and stamp duty reform.”

Turning the IPO Taps Back On

Dealmakers say the second half of the year may see a few more IPOs come to market, potentially paving the way for a stronger rebound from 2026.

“We are expecting a tentative recovery in the fourth quarter with a number of transactions not quite getting done before the summer break,” said Tom Bacon, a partner in BCLP’s M&A and corporate finance team. “This will not be the strong re-opening everyone is hoping for, but could start to build some momentum.”

Professional services firm MHA Plc was the biggest offering so far in 2025, raising £98 million on London’s junior bourse AIM. Meanwhile, Glencore Plc-backed Cobalt Holdings Plc called off what could have been London’s largest IPO in two years, and fast-fashion retailer Shein has shifted its IPO preparations to Hong Kong from London, people familiar with the matter have said.

Some companies that have been reported to be considering a London IPO this year are Italy’s NewPrinces SpA, Banco Santander SA-backed payments firm Ebury and Uzbek gold miner Navoi Mining & Metallurgical Co.

The biggest boost would come next year from the planned IPO of €19 billion ($22.4 billion) software giant Visma. Private equity group Hg Capital tentatively picked the British capital for the listing, attracted by London’s listing reforms, particularly an incoming rule allowing euro-denominated stocks into flagship FTSE indexes, Bloomberg has reported.

“It doesn’t feel like there’s a queue of IPOs lined up in London, but there are some candidates there,” Andreas Bernstorff, head of equity capital markets at BNP Paribas SA said. 

A European Problem

London is arguably hardest-hit among European exchanges, but it isn’t alone. Europe suffered its worst first half for IPO volumes in more than a decade, with bourses in Milan, Paris and Zurich seeing lower volumes than London, data compiled by Bloomberg show. Part of the issue this year has been the bout of volatility unleashed by US President Donald Trump’s tariffs, which shut the market for weeks and prompted some issuers to delay their plans for going public.

Listings in London where capital was not being raised provided a ray of hope. Last month, Anglo American’s Valterra Platinum Ltd. completed a secondary listing in London, following in the footsteps of International Paper Co., which added a London listing as part of its takeover of rival DS Smith Plc. Greece’s Metlen Energy & Metals SA said last week it expects to start trading in London in early August, although it won’t raise any funds.

To be sure, the UK was the busiest venue in Europe for overall share sales volume so far this year given the boon in follow-on issuances, including £5 billion worth of shares sold by Pfizer Inc. in Sensodyne-maker Haleon Plc. Rosebank Industries Plc, which listed last year on the AIM exchange, was able to raise £1.14 billion from investors to fund an acquisition in the US.

“For companies that have a compelling equity story and a strong management team, the London market functions very effectively,” said Jonathan Parry, a capital markets partner at White & Case.



Source link

Continue Reading

Business

Elon Musk and Bill Gates are wrong about AI imminently replacing all jobs. ‘That’s not what we’re seeing,’ LinkedIn exec slams

Published

on



The future of work as we know it is hanging by a thread—at least, that’s what many tech leaders consistently say. Elon Musk predicts AI will replace all jobs in less than 20 years. Bill Gates says even those who train to use AI tools may not be safe from its claws. And then there’s Klarna’s CEO, Sebastian Siemiatkowski, who is even warning workers that “tech bros” are sugarcoating just how badly it’s about to impact jobs.

But according to one LinkedIn exec, that’s simply not what the data is showing. 

With hundreds of millions of workers hunting for jobs and employers posting open roles in real time, LinkedIn acts as one of the clearest barometers of what’s actually happening on the ground—and its managing director for EMEA, Sue Duke, is not buying the AI apocalypse narrative.

“That’s not what we’re seeing,” Duke revealed at the Fortune CEO Forum in The Shard in London. When asked about an AI-induced hiring slowdown she insisted that the opposite is actually true. 

“What we’re seeing is that organizations who are adopting and integrating this technology, they’re actually going out and hiring more people to really take advantage of this technology,” Duke explained. 

“They’re going out and looking for more business development people, more technologically savvy people, and more sales people as they realize the business opportunities, the innovation possibilities, and ultimately the growth possibilities of this technology.”

For the millions of job seeking Gen Zers—who keep being told that entry-level jobs are about the get swallowed by AI and that a youth unemployment crisis is well underway—the news will be a welcome surprise.

LinkedIn exec breaks down exactly what employers are looking for from new hires in 2026

For those looking to make the most of the job market’s shift, Duke says there are two key areas to upskill in.

The first, no surprise one, is AI skills. Whether that’s literacy, tooling, prompt-writing, or more technical capabilities, “we continue to see those AI skills being red, red hot in the labor market,” she said. 

With companies racing to integrate automation into products and workflows, that demand isn’t cooling anytime soon—no matter what industry you’re looking to work in. “We see a huge demand for those skills across the board, economy-wide, across all sectors, and tons of companies looking for those,” Duke added.

As AI takes over many administrative tasks, it’s putting the spotlight on job functions that bots can’t do. “Those unique human skills,” Duke said, is the second area of focus for employers. “They remain rock solid, constant at the heart of hiring desires and demands out there. They’re not going away either.”

She called out communication, team building, and problem solving, as some of those human skills that will stand the test of time: “They’re the ones to invest in.”

And ultimately, the skill employers are zeroing in on most isn’t technical at all—it’s adaptability. Bosses know the tools will change faster than job titles. What they want is someone who can change with them.

“The most important thing for job seekers to think about is the mindset that you’re also bringing to the table,” Duke concluded. 

“What employers are really looking for is that growth mindset and understanding that this technology is moving very, very quickly, and we need adaptability. Adaptability is right at the top of those most in-demand skills, so making sure you’re bringing that mindset, bringing that agility with you, that’s going to be hugely important.”



Source link

Continue Reading

Business

Trump wants more health savings accounts. A catch: they can’t pay insurance premiums

Published

on



With the tax-free money in a health savings account, a person can pay for eyeglasses or medical exams, as well as a $1,700 baby bassinet or a $300 online parenting workshop.

Those same dollars can’t be used, though, to pay for most baby formulas, toothbrushes — or insurance premiums.

President Donald Trump and some Republicans are pitching the accounts as an alternative to expiring enhanced federal subsidies that have lowered insurance premium payments for most Americans with Affordable Care Act coverage. But legal limits on how HSAs can and can’t be used are prompting doubts that expanding their use would benefit the predominantly low-income people who rely on ACA plans.

The Republican proposals come on the heels of a White House-led change to extend HSA eligibility to more ACA enrollees. One group that would almost certainly benefit: a slew of companies selling expensive wellness items that can be purchased with tax-free dollars from the accounts.

There is also deep skepticism, even among conservatives who support the proposals, that the federal government can pull off such a major policy shift in just a few weeks. The enhanced ACA subsidies expire at the end of the year, and Republicans are still debating among themselves whether to simply extend them.

“The plans have been designed. The premiums have been set. Many people have already enrolled and made their selections,” Douglas Holtz-Eakin, the president of the American Action Forum, a conservative think tank, warned senators on Nov. 19. “There’s very little that this Congress can do to change the outlook.”

Cassidy’s Plan

With health savings accounts, people who pay high out-of-pocket costs for health insurance are able to set aside money, without paying taxes, for medical expenses.

For decades, Republicans have promoted these accounts as a way for people to save money for major or emergent medical expenses without spending more federal tax dollars on health care.

The latest GOP proposals would build on a change included in Republicans’ One Big Beautiful Bill Act, which makes millions more ACA enrollees eligible for health savings accounts. Starting Jan. 1, those enrolled in Obamacare’s cheapest coverage may open and contribute to HSAs.

Now Republicans are making the case that, in lieu of the pandemic-era enhanced ACA subsidies, patients would be better off being given money to cover some health costs — specifically through deposits to HSAs.

The White House has yet to release a formal proposal, though early reports suggested it could include HSA contributions as well as temporary, more restrictive premium subsidies.

Sen. Bill Cassidy — a Louisiana Republican who chairs the Senate Health, Education, Labor, and Pensions Committee and is facing a potentially tough reelection fight next year — has proposed loading HSAs with federal dollars sent directly to some ACA enrollees.

“The American people want something to pass, so let’s find something to pass,” Cassidy said on Dec. 3, pitching his plan for HSAs again. “Let’s give power to the patient, not profit to the insurance company.”

He has promised a deal can be struck in time for 2026 coverage.

Democrats, whose support Republicans will likely need to pass any health care measure, have widely panned the GOP’s ideas. They are calling instead for an extension of the enhanced subsidies to control premium costs for most of the nearly 24 million Americans enrolled in the ACA marketplace, a larger pool than the 7.3 million people the Trump administration estimates soon will be eligible for HSAs.

HSAs “can be a useful tool for very wealthy people,” said Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee. “But I don’t see it as a comprehensive health insurance opportunity.”

Who Can Use HSAs?

The IRS sets restrictions on the use of HSAs, which are typically managed by banks or health insurance companies. For starters, on the ACA marketplace, they are available only to those with the highest-deductible health insurance plans — the bronze and catastrophic plans.

There are limits on how much can be deposited into an account each year. In 2026 it will be $4,400 for a single person and $8,750 for a family.

Flexible spending accounts, or FSAs — which are typically offered through employer coverage — work similarly but have lower savings limits and cannot be rolled over from year to year.

The law that established HSAs prohibits the accounts from being used to pay insurance premiums, meaning that without an overhaul, the GOP’s proposals are unlikely to alleviate the problem at hand: skyrocketing premium payments. Obamacare enrollees who receive subsidies are projected to pay 114% more out-of-pocket for their premiums next year on average, absent congressional action.

Even with the promise of the government depositing cash into an HSA, people may still opt to go without coverage next year once they see those premium costs, said Tom Buchmueller, an economics professor at the University of Michigan who worked in the Biden administration.

“For people who stay in the marketplace, they’re going to be paying a lot more money every month,” he said. “It doesn’t help them pay that monthly premium.”

Others, Buchmueller noted, might be pushed into skimpier insurance coverage. Obamacare bronze plans come with the highest out-of-pocket costs.

An HHS Official’s Interest

Health savings accounts can be used to pay for many routine medical supplies and services, such as medical and dental exams, as well as emergency room visits. In recent years, the government has expanded the list of applicable purchases to include over-the-counter products such as Tylenol and tampons.

Purchases for “general health” are not permissible, such as fees for dance or swim lessons. Food, gym memberships, or supplements are not allowed unless prescribed by a doctor for a medical condition or need.

Americans are investing more into these accounts as their insurance deductibles rise, according to Morningstar. The investment research firm found that assets in HSAs grew from $5 billion 20 years ago to $146 billion last year. President George W. Bush signed the law establishing health savings accounts in 2003, with the White House promising at the time that they would “help more American families get the health care they need at a price they can afford.”

Since then, the accounts have become most common for wealthier, white Americans who are healthy and have employer-sponsored health insurance, according to a report released by the nonpartisan Government Accountability Office in September.

Now, even more money is expected to flow into these accounts, because of the One Big Beautiful Bill Act. Companies are taking notice of the growing market for HSA-approved products, with major retailers such as Amazon, Walmart, and Target developing online storefronts dedicated to devices, medications, and supplies eligible to be purchased with money in the accounts.

Startups have popped up in recent years dedicated to helping people get quick approval from medical providers for various — and sometimes expensive — items, memberships, or fitness or health services.

Truemed — a company co-founded in 2022 by Calley Means, a close ally of Health and Human Services Secretary Robert F. Kennedy Jr. — has emerged as one of the biggest players in this niche space.

A $9,000 red cedar ice bath and a $2,000 hemlock sauna, for example, are available for purchase with HSA funds through Truemed. So, too, is the $1,700 bassinet, designed to automatically respond to the cries of a newborn by gently rocking the baby back to sleep.

Truemed’s executives say its most popular products are its smaller-dollar fitness offerings, which include kettlebells, supplements, treadmills, and gym memberships.

“What we’ve seen at Truemed is that, when given the choice, Americans choose to invest their health care dollars in these kinds of proven lifestyle interventions,” Truemed CEO Justin Mares told KFF Health News.

Means joined the Department of Health and Human Services in November after a stint earlier this year at the White House, where he worked when Trump signed the One Big Beautiful Bill Act into law in July. Truemed’s general counsel, Joe Vladeck, said Means left the company in August.

Asked about Means’ potential to benefit from the law’s expansion of HSAs, HHS spokeswoman Emily Hilliard said in a statement that “Calley Means will not personally benefit financially from this proposal as he will be divesting from his company since he has been hired at HHS as a senior advisor supporting food and nutrition policy.”

Truemed is privately held, not publicly traded, and details of how Means will go about divesting have not been disclosed.

KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — the independent source for health policy research, polling, and journalism.



Source link

Continue Reading

Business

Netflix lines up $59 billion of debt for Warner Bros. deal

Published

on



Netflix Inc. has lined up $59 billion of financing from Wall Street banks to help support its planned acquisition of Warner Bros. Discovery Inc., which would make it one of the largest ever loans of its kind.

Wells Fargo & Co., BNP Paribas SA and HSBC Plc are providing the unsecured bridge loan, according to a statement Friday, a type of financing that is typically replaced with more permanent debt such as corporate bonds.

Under the deal announced Friday, Warner Bros. shareholders will receive $27.75 a share in cash and stock in Netflix. The total equity value of the deal is $72 billion, while the enterprise value of the deal is about $82.7 billion.

Bridge loans are a crucial step for banks in building relationships with companies to win higher-paying mandates down the road. 

A loan of $59 billion would rank among the biggest of its type, Anheuser-Busch InBev SA obtained $75 billion of loans to back its acquisition of SABMiller Plc in 2015, the largest ever bridge financing, according to data compiled by Bloomberg.



Source link

Continue Reading

Trending

Copyright © Miami Select.