Sumary of Darktrace’s astonishing rise makes City forecasters look sillier than usual | Nils Pratley:
- The Cambridge-based cyber security firm floated in April at 250p.
- It seems bizarre that investors would associate a tech company that uses artificial intelligence to spot cyber abnormalities (Darktrace) with one that runs software to organise couriers on bicycles (Deliveroo), but sometimes the City is gloriously unsophisticated.
- But the traditional IPO process, overseen by superbly paid City advisers supposedly practised in the fine art of judging investor demand, looks even sillier than usual.
- Not all buyouts are equal, chancellorStill Rishi Sunak will be delighted if Darktrace also shows that the UK market is not populated by luddite investors.
- But Sunak was addressing a different question earlier this week when he was asked about private equity’s buying spree for UK listed companies.
- Yes, the UK must obviously welcome foreign investment, but the current buyout frenzy raises questions Sunak sidestepped.
- Would Sunak really be relaxed if, say, BT, a company we’re relying on to build our fast-fibre broadband network, was the next target?