Where did all the UK IPOs go?
The London Stock Exchange had fewer new IPO listings last year than during the global financial crisis.
Things went from bad to worse for London’s capital markets scene last year when the UK saw the lowest number of IPOs in decades, with a mere 17 listings added — down 96% from its 2005 peak.
London’s reputation as a leading destination for equities suffered a further blow after mining giant Glencore, which has a market cap of £39 billion, said last week that it was considering moving its main stock listing overseas. That follows a number of high-profile departures like Paddy Power owner Flutter Entertainment and Just Eat. Indeed, in 2024, a total of 88 companies “delisted or transferred their primary listing from London’s main market,” per the Financial Times.
Fundraisings reportedly shrunk down to ~$800 million in 2024, taking a mere 0.81% share of the global IPO market. That’s fewer than what tiny frontier markets like Oman pulled in, per Bloomberg.
Small fish, bigger ponds
Part of the issue has been the willingness of executives to list overseas — with the deeper liquidity and loftier valuations of the enormous American market proving magnetic. But what’s striking for London is that it has plummeted as a choice even against its European peers, taking up only 2% of all European IPO activities as of May last year, a surprising defeat when you consider that the London Stock Exchange was the largest center for IPOs globally outside of the US or China in 2021.
Looking to 2025, stakes are high with NYSE dropout Shein waiting on approval for a UK listing after the US Securities and Exchange Commission spurned its initial plans — which, if approved, could be one of the biggest flotations on the British exchange this decade.
The good news? UK stocks are actually enjoying a rare sliver of outperformance: the FTSE 100 has gained 7% this year, while US stocks are up 2%, which, if it continues, could galvanize management teams to back Britain.
