The growing case for lawyers to float on the London market

IT was the kind of timing that a solicitor would wince at if their client was in the dock. Mishcon de Reya had spent months building its case for a planned listing on the London Stock Exchange — billed as the world’s largest legal IPO. It was expected to take place in the first quarter of this year.

- Lucy Tobin

So it was awkward that the 85-year-old firm, famous for being selected by Princess Diana for her divorce from Prince Charles, was slapped with a record fine at the start of this year by the industry regulator for breaching anti-money laundering regulations.

The Solicitors Regulation Authority said Mishcon’s work had “potential to cause significant harm by facilitating transactions that gave rise to a risk of facilitating money-laundering”. It also faced a string of recent senior departures.

Now the Holborn-headquartered law firm’s IPO is delayed, said to be due to tempestuous market conditions.

It still looks to be pressing ahead at some future date and any IPO will be closely-watched as a barometer of appetite for law firms in the public market: a growing trend.

Analysts predict the City firm won’t be the only legal business to join the public markets this year — though Mishcon, known for its elite football club clients, would be by far the highest profile.

Almost a third of 200 legal partners surveyed by litigation funder Harbour said their law firm is actively considering a stock market listing in the next 12 to 18 months, while a quarter said a floatation was “already part of their post-pandemic strategy”.