London Stock Exchange's Decline Exposed: Companies Leaving for Private Venues
Recent departures from the London Stock Exchange, including Brighton Pier and potential exits of major firms like Astrazeneca, Wise, and others, highlight the challenges faced by the exchange. Regulatory burdens, lack of liquidity, and high costs are cited as reasons for companies moving to private venues. The decline in IPO fundraising and outflows from UK equities further emphasize the need for urgent action to revive the London Stock Exchange.
The London stock market has seen persistent outflows. In May, Brighton Pier, listed on the London Stock Exchange’s AIM market, delisted due to challenging trading conditions and high costs. The lack of liquidity on AIM also influenced the decision. Large firms like Astrazeneca and Wise are considering leaving London for New York. Private equity firms pose a significant threat to the LSE, with many European companies exiting markets through takeovers. IPO fundraising in London hit a 30-year low, reflecting the market's decline. Calls for urgent action to revive the London Stock Exchange are growing.
Reasons for London's decline include tax relief policies favoring overseas investments and LSEG's focus on data post-acquisition of Refinitiv. However, there are signs of optimism, with some firms opting for London IPOs. Despite challenges, there is hope for a recovery in London's IPO market.
According to the source: City AM.
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