ipos on the horizon

After a record-breaking year for IPOs in 2021, 2022 saw activity shift in the other direction. According to EY’s Global IPO Trends 2022, global IPO volumes fell 45%, with proceeds down by 61% YOY because of increased market volatility and unfavourable market conditions. In total, 1,333 IPOs raised $179.5bn, with Asia-Pacific accounting for 67% of global IPO proceeds.

The International Monetary Fund (IMF) has predicted that a third of the world will fall into recession in 2023, meaning IPO activity could continue to decline this year. However, there remains some big IPOs which could be set to happen in 2023 and we’ve profiled five of them for you.

Zopa

Zopa, the firm credited with inventing the concept of peer-topeer lending, has made no secret of their plans for a public listing, although a date for one is yet to be set. They raised £220m in October 2021 but said they wanted to raise another $100m before launching. However, Sky News reported they were looking to raise another round of funding in October 2022, so 2023 might be the year where their IPO plans fall into place.

Chime Financial

There has been speculation that Chime Financial will go public for a few years now, yet the company remains private and no date for an IPO has been set. The US fintech unicorn Chime, which offers a financial app that acts like a bank, had a valuation of $25bn in 2021, but with stock valuations taking a hit in 2022, it’s likely a 2023 IPO would have a lower valuation.

Eg Group

One of the UK’s biggest retailers, the EG Group had revenues of $26.5bn in 2021 and has more than 6,300 petrol stations and convenience stores spread around the world. An IPO from the Blackburn-headquartered firm could be one of the biggest in the world this year. However, the firm’s owners, billionaire brothers Mohsin and Zuber Issa, are yet to outline any solid plans for an IPO.

Puregym

PureGym is the UK’s largest gym and fitness operator, and the firm first announced IPO plans all the way back in 2016 but shelved them because of Brexit. In December 2021, IPO plans were also shelved in favour of a £300m equity investment from PE giant KKR to focus on expansion. An IPO date still hasn’t been set, but estimates suggest it could value the firm at £1.5bn.

Huel

Many were expecting Huel to go public last year after the direct-to-consumer meal replacement company hired Goldman Sachs and JP Morgan to advise a dual-track process considering both the sale of the business or an IPO, with reports emerging that an IPO was the preferred option. If Huel were to go public in 2023, IG estimates a market cap of £1bn.

Clare Bowen Director

Making Tax Digital

THE THINGS YOU NEED TO KNOW

Organisations are looking for a bit of certainty as they navigate the current financial climate. Goalposts being moved are not helping with business woes.

Fortunately, HMRC’s move to delay Making Tax Digital (MTD) for income tax until at least April 2026 has brought with it a clear sense of relief for many. Compulsory entry into the scheme has also been staggered rather than bringing everyone under the same rule simultaneously.

Many will have plans in place to digitise their systems, but these efforts haven’t been wasted. MTD will give businesses a more structured method of approaching their finances via real-time data. With this comes significant advantages, such as clarity around tax liabilities and what tax is owed quarterly rather than a hefty tax bill come year-end.

Sole traders, who may use their bank account as the only gauge of their finances, will benefit greatly. For landlords too there are clear advantages. Amidst changes to mortgage tax allowances and shifting tenancy regulations, landlords can have all the data they need to make informed decisions.

So, there are clear positives but what remains to be seen is who will be impacted and when.

Another issue not yet addressed is around year-end reporting. Businesses who don’t work to HMRC’s tax year will need to be accommodated, avoiding having a year-end in one period and then reporting on it in another. The government needs to utilise the delay to understand these real issues faced by businesses and work with accountants to iron out solutions before the deadline. While these grey areas are clarified, Monahans is working hard to ensure our clients have the most up to date information. It is not just a case of ticking the MTD box, rather we’ve already identified numerous clients who will substantially benefit from digitising their systems. Businesses should use these two extra years to prepare for MTD rather than delay the inevitable.

If you need support with your MTD accounting, please get in touch today and we’d be more than happy to help: monahans.co.uk/contact-us.

T: 01793 818300 www.monahans.co.uk