Elixirr’s IPO(tion): A brief respite from the drought of listings on the LSE

July 7, 2020

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2 min read

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What's going on here?

Management consultancy firm, Elixirr Consulting Limited, plans to list on the Alternative Investment Market, marking the first new listing on the London Stock Exchange (LSE) in over two months.

What does this mean?

Elixirr has confirmed that it will be listing on the AIM, a sub-market of the LSE designed for smaller companies to access capital with greater regulatory flexibility. However, details on fundraising and valuation have not been released. The challenger consultancy wants to use the equity raised to accelerate its growth and raise its profile

Founded in 2009, it had previously been named as the fastest-growing management consultancy in the UK by the FT1000, and one of the fastest-growing firms in the US by Consulting magazine. Its clients have included Moët Hennessy, Louis Vuitton and Thomas Cook. Elixirr’s unique selling point lies in building bespoke solutions for its clients, and sharing in the risks and rewards of its partnerships. In the new businesses it helps build, a large portion of its consulting fees comes from a  share of the new company’s profit margin in 5 years’ time.

What's the big picture effect?

Elixirr’s listing on the AIM despite the recent drought of listings on the LSE is a savvy move for the consultancy. There are three main reasons for this. 

First, Elixirr seeks to grow its presence in the digital and design space. It had previously acquired creative and digital agency Den Creative, and worked with Thomas Cook in its ambition to transform holiday money and insurance services through technology. By raising equity now, it positions itself well to serve technology companies that have performed well during the COVID-19 crisis and which continue to grow. 

Second, Elixirr is also interested in the regulatory space. It has acquired an independent regulatory consultancy focusing on the financial services market, and worked with an international investment bank to ensure MiFID compliance. Thus, through this IPO, Elixirr will be able to raise its profile among companies if it capitalises on the current climate of regulatory change – both as a result of financial turmoil and the growing recognition that more regulation is needed in the fintech industry. 

Third, it is arguably a more stable period for Elixirr to float this summer than to delay its listing. While the number of companies that listed was down to 35 (2019) from 79 (2018) in the UK, the December elections and the increased clarity around Brexit are positive factors for an IPO listing. Elixirr’s IPO would not only allow it to ride the waves of digital companies and regulatory changes, but also avoid the uncertainty which may set in once again near the end of the transition period on 31 December 2020. 

The convergence of these three factors makes this summer an optimal time for Elixirr to float and take advantage of the rapid growth of digital companies to build its reputation and client base. Most other companies, however, would still want to delay their IPOs until market volatility has decreased.

Report written by Moh Su Jia

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