London’s investment landscape faces challenges as another tech firm delists.
- Quantum Exponential Group, a quantum computing investor, will stop trading shares in October.
- The decision results from difficulties in attracting investors while being listed.
- The company experienced significant valuation declines since its IPO.
- Other tech firms in the UK have made similar moves towards privatisation.
London’s market faces another setback as Quantum Exponential Group, a key player in quantum computing investment, announces delisting plans. The firm will cease trading shares by the end of October, reflecting ongoing difficulties within the tech investment sector in securing new investors as a listed entity.
Quantum Exponential revealed their decision following a general meeting where shareholders approved the move to delist. The company highlighted that their status as a publicly listed entity hindered investment opportunities, despite keen interest from potential backers.
Share prices of Quantum Exponential have plummeted by more than 90% since their peak in November 2021, eroding confidence and market valuation. Initially valued at £20 million during their IPO, the company now struggles with decreased asset value, dropping from £5.7 million to £3.8 million by April 2023, alongside posting nearly £2 million in pre-tax losses.
This trend is not isolated, as evidenced by other UK tech firms such as Manchester’s C4X and the fintech group Tintra, who have also opted to exit public markets for potentially more favourable conditions as private enterprises.
Quantum Exponential has been an instrumental supporter of early-stage quantum technology companies, investing in firms such as AegiQ and Oxford Quantum Circuits. CEO Steven Metcalfe previously expressed strong optimism, citing governmental support and the transformative potential of quantum technology. However, despite these insights, market conditions have overshadowed promising beginnings.
The departure of Quantum Exponential underscores the challenges faced by tech investors in the current market environment.
