Exodus at the London Stock Exchange: Companies are leaving in droves
- Many companies are leaving the London Stock Exchange due to declining liquidity and valuations.
- Only 18 companies dared to take the leap onto the London stage in 2024, Canal+ exception with a large IPO.
Eulerpool News·
Recent analyses paint a bleak picture of the London Stock Exchange (LSE) for the past year, marking the quietest phase since the global financial crisis. A notable number of prominent companies have relinquished their primary listing in the UK or plan to do so. These include the food delivery service Just Eat, the betting giant Flutter, the travel group Tui, and the equipment rental company Ashtead. In total, the LSE recorded 88 companies last year that relocated or entirely withdrew their listing—the highest number of companies since 2009, according to the survey by auditing giant EY. The reasons are diverse, but declining liquidity and lower valuations in the London market are often cited, which entice companies to the US, where more capital and trading activity are expected. Flutter Entertainment moved its primary listing to New York, highlighting the associated 'deepest and most liquid capital markets in the world.' Just Eat Takeaway, on the other hand, completely withdrew from the LSE due to the excessive 'administrative burdens, complexity, and costs' associated with the listing. Some companies, like Watches of Switzerland, have been under pressure from activists to relocate their primary listing to the US as well. This trend was further exacerbated by a lack of new stock listings in 2024. EY stated that only 18 companies—the lowest number since records began in 2010—ventured onto the London floor, a fifth compared to the companies that departed. Nevertheless, the entry of the French television and production giant Canal+ bolstered the London market in December with an initial public offering valued at 2.6 billion pounds. This was the largest listing since 2022 and drove the total value of the funds raised in the year to 3.4 billion pounds—three times the amount generated by 23 companies in 2023. Scott McCubbin, appointed IPO leader for UK and Ireland at EY, describes the year for the LSE as 'quiet,' citing ongoing geopolitical instability, slow economic growth, and subdued demand for British equities, particularly from pension funds. While current conditions remain uncertain, they also reflect reasons for cautious optimism as the year 2025 approaches. Modern Financial Markets Data
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