In 2024, the London Stock Exchange (LSE) experienced a notable departure of firms, with 88 entities either withdrawing from or relocating their primary listings away from the main market. This situation represents the most substantial exit since the 2009 global financial crisis, as reported by auditing firm EY. Among the prominent names announcing their exit from the LSE were Just Eat, Flutter Entertainment (which owns Paddy Power), travel conglomerate TUI, and equipment rental company Ashtead.
The reasons provided by these companies for their departure primarily included decreasing liquidity and reduced valuations in London. A number of them chose to transition to the US market, which promises more robust and liquid capital environments. Flutter Entertainment transferred its main listing to New York to leverage what it termed the “world’s deepest and most liquid capital markets.” Just Eat Takeaway fully disengaged from the LSE, citing the “administrative burden, complexity, and costs” involved in retaining its shares in London as the main factors.
This surge in exits coincided with a rather subdued year for initial public offerings (IPOs) in London. EY documented a mere 18 IPOs throughout 2024, marking the lowest figure since the firm began monitoring this data in 2010. However, the December debut of French TV and production giant Canal+, which raised £2.6 billion, offered some respite—this was the largest listing since 2022.
This achievement increased the total funds raised for the year to £3.4 billion, which was three times the amount garnered from 23 companies in the previous year.
Liquidity Issues in London Trigger Corporate Exits
Scott McCubbin, who leads EY’s IPO division for the UK and Ireland, characterized 2024 as a “quiet year” for the LSE.
He linked the low activity levels to factors such as geopolitical uncertainties, sluggish economic progress, and a waning interest in domestic equities from pension funds. These elements adversely affected both valuations and liquidity, motivating companies to seek exchanges with more substantial investor participation and enhanced liquidity potential. Despite these ongoing hurdles, McCubbin expressed a tempered sense of hope for 2025.
“A more stable domestic policy post-election, a thriving deal pipeline, and reforms to listings could present opportunities to regain London’s competitive edge, likely stimulating a resurgence in activity during early 2025,” he remarked. On a global scale, 2024 saw 1,215 IPO transactions, which generated $121.2 billion—slightly less in volume and worth than in 2023. India led in terms of IPO numbers, while the US remained the foremost country for proceeds amassed.
The UK government continues to prioritize economic advancement and investment. A spokesperson from the Treasury highlighted various significant IPOs and listing announcements from high-growth firms such as Raspberry Pi and Canal+ as proof of the confidence present in UK capital markets. The government is rolling out reforms, including the establishment of pension megafunds and amendments to listing regulations, aimed at enhancing London’s appeal for future IPOs.
As the UK capital adapts to the evolving global financial scene, the aspiration is that these initiatives will revitalize its status as a leading venue for public offerings.
