Darktrace IPO dealt blow after UBS pulls out over Mike Lynch ties

The £4 billion stock market floatation of Darktrace has been dealt an early blow after Swiss bank UBS reportedly pulled out due to the firm's ties to British entrepreneur Mike Lynch.  

The decision came from the bank's compliance department and is related to a 'Suspicious Activity Report' (SAR) regarding Lynch's current legal battles with US and UK authorities, according to Sky News. 

A SAR is a regulatory requirement for banks that must be made if there is any suspicious legal activity in a transaction. UBS was appointed alongside US multinational Jefferies to lead Darktrace's listing in November, but the firm has reportedly said it cannot continue on behalf of the UK firm due to Lynch's proposed extradition to the US to stand trial,

Lynch was one of the first investors in Darktrace through his VC firm Invoke Capital, but it is his previous ventures that have led to UBS pulling out and also his potential extradition to America. 

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