In London, Reining in Foreign Tycoons May Hurt IPO Fees

Reducing founders’ control may drive away IPO business
Photographs by Valeriy Levitin/Ria Novosti (Chodiev); Manpreet Romana/AFP/Getty Images (Ruia); Evan Vucci/AP Photo (Machkevitch); Getty Images (London)

Over the past decade, London became a second home for foreign billionaires who made their money in natural resources and were attracted by the U.K.’s stability and flexible tax laws. Their companies soon followed: Commodities empires, including Kazakhstan’s Eurasian Natural Resources (ENRC) and India’s Essar Energy, held initial public offerings on the London Stock Exchange. The IPOs provided steady work for London’s bankers and lawyers.

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