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Highlights
- 2024 saw the largest exodus from the London Stock Exchange since the global financial crisis.
- 88 companies delisted or moved their primary listings, primarily seeking better liquidity and valuation prospects abroad.
- Optimism for 2025 grows as London's market sees potential for reform and improved activity.
The London Stock Exchange (LSE) experienced a challenging year in 2024, marked by an unprecedented exodus of companies moving their primary listings away from the UK. This trend, the largest since the global financial crisis, highlights significant concerns about the LSE’s competitive position on the global stage. Notable companies such as Just Eat Takeaway (LON:JET), Paddy Power owner Flutter Entertainment (LON:FLTR), travel giant Tui (LON:TUI), and equipment rental firm Ashtead (LON:AHT) were among those choosing to leave the LSE, opting for listings in more liquid and capital-rich markets, particularly the US.
The factors behind this shift were primarily related to declining liquidity and lower valuations on the LSE. These companies expressed the need to access larger and more active investor pools, with markets like New York offering more dynamic trading environments and greater capital availability. Flutter Entertainment’s decision to shift its primary listing to the US was motivated by the appeal of the “world’s deepest and most liquid capital markets,” underscoring the challenges faced by the LSE in retaining high-profile listings.
Similarly, Just Eat Takeaway pointed to the administrative burdens and complexities of maintaining a UK listing as one of the driving forces behind its decision to abandon the LSE altogether. As 88 companies delisted or moved their listings, it became clear that the LSE's stature was under threat from other major financial hubs.
IPO Market Struggles to Meet Demand
2024 also witnessed a shortage of new companies listing on the LSE, compounding the negative trends. With only 18 initial public offerings (IPOs) in London during the year, the stock exchange saw its lowest volume of new listings since 2010. This marked a stark contrast to the 88 companies that chose to delist or transfer their listings, further underscoring the difficulties the LSE faces in maintaining its role as a leading global market.
Despite these setbacks, the launch of French TV and production giant Canal+ in December provided a much-needed boost to the LSE. The company raised £2.6 billion, marking the largest listing since 2022. This success helped push the total amount raised through IPOs on the LSE in 2024 to £3.4 billion, more than three times the amount raised the previous year. While these positive outcomes offer some hope, the broader picture of delistings and declining IPO activity reflects a deeper structural challenge for the LSE.
A Cautiously Optimistic for 2025
While 2024 was a tough year for the LSE, there is cautious optimism as we move into 2025. The promise of a stabilised domestic policy environment post-election and a robust pipeline of deals could pave the way for a rebound in market activity. Furthermore, proposed listings reforms aim to restore London’s competitiveness and attract more companies to the exchange. If these efforts succeed, there could be a revitalisation of market activity in the first half of 2025, helping to position the LSE as a more attractive option for companies looking to raise capital and access liquidity.
Although the challenges faced in 2024 are significant, the strategic reforms in progress, combined with a stronger economic and political climate, suggest that London’s financial markets could once again see growth and recovery in the near future.
