Kanabo Becomes First Cannabis Company to List on London Stock Exchange

For the first time, a cannabis company has debuted on the London Stock Exchange. Kanabo, a producer of cannabis-based products, saw its shares surge by 223% on its first day of trading.

Kanabo’s shares were initially offered at 6.5 pence each. At the opening of trading, the price briefly soared to 21 pence. As of 2:38 PM Moscow time, Kanabo shares were trading at 17.5 pence—169% higher than the initial offering price.

This marks the first time a cannabis company has listed its shares on the London Stock Exchange. In 2020, the UK finally allowed cannabis producers to enter the market. Kanabo specializes in manufacturing cannabis products for medical use.

Strong Investor Demand and Market Outlook

According to Kanabo CEO Avihu Tamir, the company raised £6 million ($8.3 million) during its IPO, with investor demand exceeding 300% of the available shares.

“The response from the UK investment community since we published our IPO prospectus two weeks ago has been simply overwhelming,” said Tamir.

This high demand is linked to the legalization of cannabis in parts of North America. The growing trend toward medical cannabis is also increasing investor interest. Tamir believes the UK market could follow a similar path to the US, and that Kanabo’s success on the exchange is just the beginning of a major trend.

“With the support of the FCA (Financial Conduct Authority) and the London Stock Exchange, the medical cannabis industry will rapidly develop in the UK and Europe, just as it has in North America in recent years,” Tamir stated.

Global Cannabis Market Growth

The global legal cannabis market is currently valued at $17.5 billion. According to research by Precedence Research, this market is expected to grow to $65 billion by 2027.