London Stock Exchange Group PLC's (LSE:LON:LSEG) IPO drought is set to continue in 2025 with one commentator predicting listings will slump to a new low.
Data from the Financial Conduct Authority (FCA) shows that just 40 companies made applications to list on the market in 2024, down 30% from 2023 and 70% down on the 125 companies that applied in 2021.
Joshua Raymond (NS:RYMD), Managing Director of XTB in the UK, said: “The London Stock Exchange desperately needs to reinvent itself as a vibrant marketplace for capital and ideas.
“There have been some bright spots in 2024 with big names preparing to list in London. However, what we really need is not just one or two big names, but a steady supply of new exciting companies, and capital, to drive growth.”
XTB added that the data is forward-looking as it shows the number of companies applying to the regulator for permission to list.
“Given it can take some months between applications going in and shares starting to trade, the data suggests there is unlikely to be any uptick in activity in the listings market, at least in the first half of 2025.”
There were just 14 IPOs on the main and AIM markets of the LSE in 2024, raising a total of £760m against 126 IPOs in 2021 raising a total of £14.6bn across both markets.
Raymond said: “This fall in activity is something that should concern all participants in the market, including regulators and the Government.
“Capital markets need to respond to international competition. At present, it would seem that the LSE is simply not as attractive as some of its main global competitors.
“There has to be a concerted effort made by the UK and London for this to change and buck the trend.”