The London Stock Exchange (LSE) saw a significant exodus of companies in 2024, with 88 firms either delisting or moving their primary listings from the main market. This marks the largest outflow since the global financial crisis in 2009, according to an analysis by auditing firm EY. Several high-profile companies announced plans to leave the LSE, including Just Eat, Flutter Entertainment (owner of Paddy Power), travel group TUI, and equipment rental firm Ashtead.
These companies cited declining liquidity and lower valuations in London as the main reasons for their decisions. Many opted for the US market, which offers deeper and more liquid capital markets. Flutter Entertainment moved its primary listing to New York to take advantage of the “world’s deepest and most liquid capital markets.” Just Eat Takeaway completely exited the LSE, blaming the “administrative burden, complexity, and costs” of maintaining its shares in London.
The wave of departures coincided with a lean year for initial public offerings (IPOs) in London. EY reported only 18 IPOs in 2024, the lowest volume since the firm began tracking the data in 2010. However, the launch of French TV and production giant Canal+ in December provided a boost, raising £2.6 billion on its market debut—the largest listing since 2022.
This brought the total value of proceeds raised over the year to £3.4 billion, triple the amount raised from 23 companies in 2023.
London’s liquidity challenges prompt exodus
Scott McCubbin, EY’s IPO lead for the UK and Ireland, called 2024 a “quiet year” for the LSE.
He attributed the sluggish activity to geopolitical instability, slow economic growth, and a declining appetite for domestic equities among pension funds. These factors impacted both valuations and liquidity, leading companies to explore exchanges with greater investor depth and better liquidity prospects. Despite the challenges, McCubbin expressed cautious optimism for 2025.
“A stabilized domestic policy environment post-election, a robust pipeline of deals, and listings reform are creating opportunities to restore London’s competitiveness, which could drive a rebound in activity in the first half of 2025,” he said. Globally, there were 1,215 IPO deals in 2024, raising $121.2 billion—slightly lower in volume and value compared to 2023. India took the lead with the highest number of IPOs, while the US maintained its position as the top country in terms of proceeds raised.
The UK government remains committed to economic growth and investment. A Treasury spokesperson emphasized recent IPOs and listing announcements by high-growth companies like Raspberry Pi and Canal+ as evidence of confidence in UK capital markets. The government is implementing reforms, including the creation of pension megafunds and changes to listing rules, to make London more attractive for future IPOs.
As London adapts to the changing global financial landscape, the hope is that these measures will help revitalize its standing as a premier destination for public offerings.
