Staff Reporter
London is not alone in its struggles with stock listings; this issue is being felt worldwide, according to David Schwimmer, CEO of the London Stock Exchange Group (LSEG).
Recent data from EY reveals that only 18 initial public offerings (IPOs) took place on the London Stock Exchange last year, with a surge of eight occurring in the final quarter. Schwimmer emphasized that this isn’t just a unique problem.
“We have observed a generally subdued environment for IPOs globally, affecting markets in New York and Hong Kong as well,” he told CNBC. “This has drawn significant attention.”
These developments have raised alarms about London’s competitive edge in the market. Mining giant Glencore is considering relocating, following notable exits from companies like Flutter Entertainment, Tui, and Just Eat Takeaway.
In fact, the LSE experienced the loss of 88 companies last year, whether through delistings or shifts to other primary listings—the highest number since 2009.
David Schwimmer, CEO of the London Stock Exchange Group, has a warning for companies eyeing listings in other markets.
“Over the past decade, 20 U.K. companies have listed in New York, raising over $100 million. Of those, only four are seeing gains, while about nine have delisted, and the remainder are down by more than 80%. So, it’s important to be cautious about the notion that the grass is always greener,” he stated.
Euronext CEO Stéphane Boujnah also expressed concerns about London’s standing, noting that “London has lost its leadership in terms of liquidity for shares.”
However, Schwimmer highlighted that while IPOs may be struggling, the London Stock Exchange is performing well in capital raising overall. “When you look at the capital raised on the London Stock Exchange—not just from IPOs but also follow-on offerings—the market is thriving. In fact, it has raised more capital than the next three European exchanges combined,” he said.
Goldman Sachs shares a positive outlook on the U.K.’s IPO market. Richard Cormack, head of equity capital markets for EMEA at Goldman Sachs, indicated in February that he anticipates a rise in IPO activity in 2025 as political uncertainties following last year’s election begin to ease.
