If recent reports are true and interactive investor is now asking banks to pitch for a possible initial public offering (IPO) next year, it marks a step closer to one of the UK market’s more highly anticipated flotations. The platform has benefited significantly from the DIY investing boom of the pandemic: it took on 31,667 new clients in the first half of this year alone, having added 41,796 new customers in 2020. At the midpoint of 2021 the platform had more than 400,000 customers and assets under administration of nearly £55bn. It has also been notably acquisitive in its recent history.
It should be noted that no formal decision has been made on whether the IPO will go ahead, according to Sky News reports. But a successful flotation is likely to be welcome news to many investors, as well as to Unicorn Aim VCT (UAV) that listed interactive investor as its largest holding at the end of June.
As with other trends turbocharged by the pandemic, the investing boom could well lose some of its momentum over time, for a variety of possible reasons. But whether the easy wins are gone or not, investors already have plenty of routes into this trend beyond any potential interactive investor flotation. Several other beneficiaries of the trend are available not just on the stockmarket but via a selection of UK equity funds.