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Headlines
- London IPO Proceeds Surge in 2024 Amid Concerns Over Delisting
- Companies Face Delisting and Regulatory Challenges, Despite Strong Listing Performance
- Optimism for 2025 with Potential Listings and Regulatory Reforms
London IPO Activity Soars Despite Challenges
Public listings in London experienced a significant rise in proceeds in 2024, despite concerns surrounding delisting rates and low IPO volumes. The surge in funds raised was mainly driven by a strong finish to the year, with key players like Canal+ contributing to the increase. This trend represents a hopeful sign for the London market, which has faced ongoing difficulties related to market conditions and regulatory burdens.
Challenges to IPO Activity and Delisting Trends
Although London’s listing activity saw a decrease in the number of IPOs in 2024, the overall funds raised more than tripled compared to the previous year. Despite this growth in proceeds, the capital markets continued to face significant challenges, with a notable rise in delisting activity. Many companies cited high regulatory costs, liquidity concerns, and low valuations as reasons for leaving the London Stock Exchange. Among the companies exiting the exchange was Just Eat Takeaway, which opted to maintain its primary listing on Amsterdam’s Euronext instead, citing the complexity of maintaining an LSE listing.
A Hopeful Outlook for 2025
The outlook for London’s IPO market in 2025 remains optimistic, with experts highlighting the potential for recovery. Industry leaders believe that the stabilised domestic policy environment, coupled with potential regulatory reforms, could improve the competitiveness of the London exchange. These changes are expected to open up new opportunities for listings in the upcoming year, including a reported listing from Shawbrook, a mid-sized bank, which is set to make a strong entry into the London market.
In conclusion, while 2024 presented challenges for the London IPO market, the final quarter brought renewed hope, with larger listings and plans for regulatory reforms paving the way for a promising future in 2025. The resurgence of activity towards the end of the year, combined with a hopeful policy environment, signals that London’s IPO scene could regain its competitive edge in the global financial landscape.
