The mounting pressure on Britain’s capital markets has reached a critical point, with more than 50 per cent of UK public limited companies discussing potential overseas listings in the past year. This stark figure represents a dramatic doubling from the previous year’s 27 per cent, according to Teneo’s comprehensive CEO and investor outlook survey.
Despite this concerning trend, there are glimmers of optimism in the UK market. The survey, encompassing views from 67 UK-based public limited company chief executives, revealed that 68 per cent perceive increased value in UK listings over the past 12 months—a remarkable improvement from the mere 5 per cent recorded in the previous year. Looking ahead, 78 per cent of respondents anticipate further value growth in London listings over the next year.
The Financial Conduct Authority’s response to these challenges came in July, launching the most significant overhaul of listing rules in 30 years. These reforms introduced a simplified listings regime, abolished the traditional premium and standard listing categories, and offered enhanced flexibility for voting rights—a practice widely accepted in the US but historically contentious in the UK.
However, these measures have yet to stem the exodus from London’s markets. The London Stock Exchange Group reported 88 companies delisting or transferring their primary listing from the main market this year, with only 18 new entries—marking the largest net outflow since 2009 and the lowest number of new listings in 15 years.
Notable departures include Ashtead, the industrial equipment hire company, which recently shifted its primary listing to New York. This follows similar moves by Flutter and building materials group CRH. Meanwhile, companies like Darktrace and Hargreaves Lansdown have been acquired by private equity firms and delisted.
The motivations for these departures often centre on access to deeper investor pools and higher valuations in the US market. Some moves reflect operational realities—Ashtead generates 98 per cent of its operating profit in the US, while Ferguson, which relocated in 2022, derives 99 per cent of its profit from US operations.
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