The London Stock Exchange saw the largest outflow of companies since the global financial crisis last year, a new analysis has shown.
Once the envy of Europe, LSE has suffered a steady drain of businesses delisting or transferring their primary listing from the main market, according to data from auditing giant EY.
In all, 88 companies moved out of the market, compared to just 18 new listings.
Takeaway giant Just Eat, Paddy Power owner Flutter, travel group Tui, and equipment rental firm Ashtead were among those to announce plans to ditch their main UK listing.
A number of these firms said declining liquidity and lower valuations were key reasons for moving away from London, particularly to the US which offers more capital and trading activity.
Scott McCubbin, EY’s IPO lead for the UK and Ireland, said it had been a “quiet year” for the LSE, adding: “Ongoing geopolitical instability, slow economic growth and a diminished appetite for domestic equities among pension funds have impacted valuations and liquidity.
“We also saw the largest outflow of companies from the main market since the global financial crisis as companies sought access to a deeper pool of investors and the prospect of improved liquidity on other exchanges.”
“But as we enter 2025, there are reasons for cautious optimism,” Mr McCubbin went on.
“A stabilised domestic policy environment post-election, 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.
“Businesses eyeing IPOs will be closely watching the market to time their public offerings effectively.”
Related: Profits at GB News’ owner’s hedge fund fall off a cliff