European cinema operator Vue is exploring a London listing to capitalise on a record-breaking summer at the box office, offering a potential boost for the UK's struggling stock market. Vue's founder and chief executive Tim Richards said an exit for investors who took control in a £1bn debt restructuring four years ago could take the form of a stock market listing or private sale. Two people familiar with the matter said the company's backers, which include US asset manager Barings and hedge fund Farallon Capital, favoured an IPO at an estimated valuation of up to £1.5bn.

A final decision is expected within weeks, with the aim of kicking off the process before the end of 2026 and potentially floating next year. Vue's backers have been working with advisers at Rothschild. A listing would be a boost for London's moribund stock market after a string of potential flotations this year was delayed, including software business Visma, Loveholidays and Superdrug owner AS Watson.

Bankers are resting their hopes on the planned £7.5bn listing of Airtel Africa's mobile money business later this year, which would be the biggest new listing in London since 2021, when money transfer company Wise floated at a valuation of nearly £9bn. Vue operates about 220 cinemas in eight countries across Europe, including the UK, Germany and Italy. The company reported revenues of £781mn for the year to last November, up 5.9 per cent on the previous year, and made an operating profit of £80mn.

The chain was taken over by its lenders as part of a post-Covid rescue deal after repeated lockdowns exacted a heavy toll on the cinema industry. Vue last year debuted a new range of luxury seating with integrated wine coolers. This year marks the first complete film slate since 2020.