LSEG inscriptions were seen on screens in the lobby of the London Stock Exchange in London, Britain, May 14, 2024.
Hannah McKay | Reuters
London’s list of list is not limited to the capital, with the USA -U Asia weakness, according to the head of the London stock market.
According to EY, last year there were only 18 initial public offers on the London Stock Exchange – eight of which came to the stock market in the fourth quarter.
But LSEG CEO David Schwimmer said it was not a unique problem.
“We saw on a global basis, a pretty muffled environment for IPO, which is in New York, which was in Hong Kong,” he told CNBC. “That has a lot of attention.”
This has led to get lost in connection with London – or lost – his Mojo. Mining giant Glencore is moving away, after deviating from a high profile of similar Flutter entertainment,, TUI and Just eat the departure. In fact, LSE lost 88 companies last year, whether he transferred or transferred the primary lists elsewhere – at most since 2009.
Schwimmer warned of those who look at somewhere else.
“When you talk about companies that went to New York, it’s not such a beautiful picture,” he told CNBC “Squawk Box Europe”.
“If you look at the last 10 years, 20 companies in the UK has gone to the New York list and has raised more than $ 100 million. Of those 20, four are traded, something like nine was discarded, and the rest are traded over 80%. So I think you have to be careful with the narration of the grass always greener.”
The Euronext CEO of Stéphane Boujnah expressed his own concern for the capital of the UK, saying CNBC “Squawk Box Europe” that “London lost the lead when it comes to share liquidity.”
Strong pipeline
Despite the fact that in the London list the amount dropped to the lowest number of decades last year -s revenues for almost a fifth compared to 2023- Lseg chief is optimistic for this year, saying that the pipeline looks much better. And LSEG chief is optimistic for this year, saying that the pipeline looks much better.
“If you look at the collection of capital that took place on the London Stock Exchange, not necessarily IPO, but the monitoring, this market works very, very well and more capital has been raised on the London Stock Exchange than the next three European exchanges in combination,” Schwimmer said.
Goldman Sachs He also shares a bull’s view of the British IPO landscape. Richard Cormack, head of capital capital market for EMEA in Goldman Sachs, said in February that he expects an IPO activity to be picked up in 2025, because political uncertainty is entering last year’s elections.
While some British and European companies can still attract the US, Cormack claimed that it was unlikely to see the flood of British or European non-technological, non-biopharma companies outside their home market.
Hong Kong Return?
The idea that now the destination for cross -border lists was also caused by a new competitor on stage: Hong Kong.
A city that is preparing to revive a $ 20 billion list this year According to the financial timeHe is ready to use the increasing trade tension between the US -ai China.
Shares in the largest Chinese chain of tea bubbles, mixue, increased more than 40% on his debate in Hong Kong earlier this month. The list in Hong Kong was 5,200 times subscribed, while the international offer was more than 35 times subscribed.
Bonnie Chan, Hong Kong Exchanges and Clearing CEO, she told CNBC “Squawk Box Asia“ She saw the increase in the demand of global investors.
“We see a much stronger interest from the United States, as well as Europe and the rest of the world,” she said. “There is certainly an appetite for investors to pick up these mega iPo.”
