BlackRock raises concerns over IPO processes

BlackRock has raised concerns over the quality of IPOs in Europe as improving equity markets continue to encourage more non-listed companies to float.

According to reports, BlackRock has emailed bankers and called for the flotation process for IPOs to be improved.

These calls come after a growing European IPO market was impacted by poor market debuts from UK retirement group Saga, Spanish industrial testing business Applus and online travel agent eDreams Odigeo.

BlackRock head of Emea capital markets Rob Leach has written in an email to bankers telling them to consider “why the first half had been so poor” and asked them “how this trajectory can be altered in the short timeframe leading up to the next raft of IPOs only a month away”.

The recent rush to market of IPOs has raised concern from other asset management firms.

Artemis fund manager Tim Steer recently labelled the IPO market in the UK as being in a “terrible state” and Threadneedle Investments head of UK equities predicted a “significant majority” of soon-to-float companies will lose investors’ money.