London Tunnels switches IPO plan from the UK to Amsterdam

A company that is planning to transform former second world war tunnels in London into a tourist attraction is pursuing a listing in Amsterdam, six months after announcing a planned initial public offering in London.

The London Tunnels, which intends to develop the Kingsway Exchange Tunnels under Chancery Lane, said on Monday it had applied for a listing on the Euronext Amsterdam, and expected its shares to start trading on June 27.

The group said it hoped to raise £30mn from the IPO, giving it a market capitalisation of about £130mn.

The update comes after chief executive Angus Murray said in January that the “unique” set of tunnels was “owned by a British company, built by the British government, for the defence of Britain” and as a result “should be listed in London”.

Announcing the new plan on Monday to list in Amsterdam, he said: “The London Tunnels can now take advantage of the size and scale of both the equity capital markets and debt capital markets of Europe.” The company did not further outline why it chose to abandon a London listing.

The group is planning to redevelop the Kingsway Exchange Tunnels built in the 1940s under Chancery Lane Tube station, originally intended to provide shelter for 8,000 people during the war.

They were originally used as offices for the civil service during the second world war, and are thought to be the inspiration for the “Q Branch” in the James Bond books. The tunnels were also used by the Post Office in 1949, and in 1956 were the termination point for the first transatlantic telephone cable.

On Monday the group said it would require between £20mn and £30mn in investment over one to two years, and a further £120mn in debt and equity to make the attraction operational.

London Tunnels posted a loss of just under £270,000 for the year to March 31 2023 according to its most recent accounts filed with Companies House, up from a £91,702 loss recorded in the year to December 31 2021.

The company is planning to launch the tunnels as a “historical and cultural attraction” in 2027. Peter Curtin, the company’s chair, said the listing on the leading pan-European market would give investors the opportunity to acquire shares in “what is likely to be the last major historical and heritage attraction that can be reopened in central London”.

The City of London Corporation approved London Tunnels’ plans this month, and the London Borough of Camden is scheduled to decide on the application in “the near future”, the company said.