London Tunnels switches listing plan to Euronext Amsterdam
London Tunnels announced plans to raise £30m through an initial public offering (IPO) on Euronext Amsterdam on Monday, shifting its listing plans from the London Stock Exchange.
The company, planning to transform the World War II-era Kingsway Exchange Tunnels in central London into a cultural attraction, expected a market capitalization of £130m on listing on 27 June, according to Dow Jones Newswires.
Shares would be issued at 200p each, with a prospectus to be published later on Monday.
Originally constructed in the early 1940s as an air-raid shelter for 8,000 people, the tunnels are located beneath Chancery Lane tube station.
The development project, pending final planning permission from the London Borough of Camden, had already secured the go-ahead from the City of London Corporation.
London Tunnels projected the project to take several years, with a full-scale launch anticipated in 2027.
Once operational, the attraction was expected to draw around three million visitors annually.
The board estimated the development to cost £20m to £30m over the coming years, with an additional £120m required for the full conversion of the tunnels.
That additional funding was set to come from a mix of debt and equity.
“We believe a public listing of London Tunnels is the logical next step, improving our ability to raise further capital over the coming years to support the company's growth strategy and create long-term value,” said the firm’s chief executive officer Angus Murray.
The move was yet another setback for the London Stock Exchange, which had recently experienced a series of high-profile defections.
Irish building materials supplier CRH moved its main listing to New York last September, while Flutter Entertainment transitioned its primary listing to Wall Street on 31 May.
Travel giant TUI and British chip maker Arm Holdings had also opted for listings outside of the British capital.
Reporting by Josh White for Sharecast.com.