Don't rush to write off London for listings after one failed float

LAST week WE Soda - an industrial company and the world's largest producer of natural soda ash-cancelled its plans for a London listing. After a number of tech floats had previously chosen the US over London, a good deal of hype had been generated around this potential IPO, so many in the City were left disappointed when it fell through.

- Andrew Collins and Paul Arathoon

Like using tea leaves to divine the future, many then began to make claims about the wider significance of the news for London. Over the weekend, WE Soda's boss redoubled his criticism of London as a listing destination, along with the rest of Europe. "You get local support for domestic floats in the Middle East and they get done," Alasdair Warren said. "In the US, you can always find a clearing level [to get a good deal] but here in London and Europe the institutions do not have the commitment to step up and take ownership."

We ought to take care in how we react to stories like this though. The reality of the corporate world is so often very different from how it might seem at first glance, and so far away from what we might like it to be.

Here, for example, many commentators were quick to say that this was a "huge blow to London" and it was being framed as something of a disaster for the City, and a sign that the UK is becoming a less favourable destination for listings as time goes on. But, when you peer behind the curtain, the picture of exactly what went on becomes a little less clear.