London Stock Exchange Suffers Mass Exodus

The London Stock Exchange (LSE) is on track for its worst annual performance in 15 years, with dozens of companies continuing to leave the UK market for US listings, amid growing concerns that more FTSE 100 companies could follow suit.

Since the start of 2024 and up to the close of trading on December 13, 88 companies have announced delisting or transfer of their primary listing from London’s main market, while only 18 have maintained their status, according to a report by the London Stock Exchange Group.

The exodus of companies represents the largest net outflow from the main market since 2009, while the number of new listings is expected to be the lowest in 15 years due to a decline in initial public offerings on the British stock exchange.

Despite efforts by the UK government, regulators and the London Stock Exchange to boost the attractiveness of the global financial capital, including reforms to market rules and the local pension system, these measures have so far failed to stem the flow of companies to US markets.

Ashtead, an equipment leasing company with a market value of £23 billion ($29.03 billion), was the latest high-profile name to announce plans to move its primary listing from London to New York this month.

The combined market value of the companies that have left the London Stock Exchange so far is about £280 billion ($353.46 billion), or 14% of the current FTSE 100, according to the report, as of the close of trading on Friday, December 13.

The exodus comes as the London Stock Exchange faces significant challenges in its ability to attract new companies and maintain existing listings, raising questions about the city’s future as a global financial hub.