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More firms leave in takeovers than join through new flotations in a decade of doom for the London Stock Exchange By GEOFF HO Updated: 17:00 EST, 1 January 2025 e-mail View comments The London Stock Exchange lost more companies to takeovers than it gained through new flotations over the last decade, according to analysis seen by the Mail. Figures from the financial data group Dealogic show 585 companies worth a combined total of £779billion have left the London market due to being bought either by competitors or private equity since 2015. That compares to 567 that joined either the LSE’s main market or junior division AIM over the same period.
Those firms had a combined value of £66billion – far lower than those leaving because many of the new joiners were young companies looking to grow. The findings will make for grim reading amid concerns over the health of the stock market, the City and wider UK economy. While the number of companies with shares trading on its equity market has been shrinking due to takeovers, the LSE has failed to attract replacements through initial public offerings (IPOs), with competitors like the New York Stock Exchange and Nasdaq consistently beating it to host flotations.
Exodus: Figures show 585 companies worth a combined total of £779bn have left the London market due to being bought either by competitors or private equity since 2015 Samuel Kerr, at Dealogic’s owner ION Analytics, said the LSE has struggled to attract overseas companies to list in London in recent years. While upcoming reforms by the Financial Conduct Authority will make the process easier for companies to float, he said it remains to be seen if they will help reverse London’s decline. ‘Much of the slowdown can be attributed to the need to establish a new identity for the LSE since the UK left the European single market, with London no longer an English-speaking common law bridge to European markets as it once was,’ he said.
‘The FCA’s new listing reforms have come some way to reducing any regulatory burdens of a London-listing, the proof in the pudding will be whether the LSE can attract sizeable IPO candidates in 2025 and beyond.’ Last year saw 60 companies worth a combined total of £59.4billion leave the LSE due to being taken over.
In comparison, only 13 companies floated in London, in deals worth £725million. RELATED ARTICLES Previous 1 Next Stormy times ahead for investors with UK now seen as an..
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. Share this article Share HOW THIS IS MONEY CAN HELP How to choose the best (and cheapest) stocks and shares Isa and the right DIY investing account Since London listings hit a decade high of 125 in 2021, deal volumes have plunged. By contrast, that same period has seen on average 61 departures from the LSE each year.
One flotation that is expected to take place in London is that of Chinese fast fashion giant Shein. Despite hopes that it will spark a turnaround in London’s fortunes, AJ Bell investment director Russ Mould said that it is far from being a done deal. He explained: ‘If Shein lands, it’s a big one but we have not got there yet, it still has to clear regulatory approval because of concerns about its supply chains.
‘I suspect that ultimately, this deal will come down to valuation and it will be probably valued lower than its listed competitors, even with the IPO discount.’ DIY INVESTING PLATFORMS AJ Bell AJ Bell Easy investing and ready-made portfolios Learn More Learn More Hargreaves Lansdown Hargreaves Lansdown Free fund dealing and investment ideas Learn More Learn More interactive investor interactive investor Flat-fee investing from £4.99 per month Learn More Learn More Saxo Saxo Get £200 back in trading fees Learn More Learn More Trading 212 Trading 212 Free dealing and no account fee Learn More Learn More Affiliate links: If you take out a product This is Money may earn a commission.
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