Just 18 companies made their debut on the London Stock Exchange in 2024, according to Ernst & Young, the lowest number since its record began in 2010.
While the figure is a drop down from 2023’s 23 listings, proceeds raised in 2024 far outpaced the previous year. While 2023 raised £953.7m, 2024 increased by over 250% to £3.4bn in proceeds. This was largely stimulated by the listing of media and entertainment company Canal+. Since its listing on 16 December, the stock has dropped 1.77%.
Delisting was a much more common practice in 2024, with 88 companies leaving completely or transferring their listing from the main market. While some left due to liquidity or valuation issues, others moved to different markets, primarily the US, to access higher trading volumes.
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The last quarter of the year showed more promise for the UK market, however, with eight IPOs including Canal+.
Scott McCubbin, EY UKI IPO leader, said: “It’s been quiet year for the London Stock Exchange and, while Q4 activity picked up significantly, headwinds facing the UK’s listings market remain. 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 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. 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 H1 2025. Businesses eyeing IPOs will be closely watching the market to time their public offerings effectively.”
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IPO volumes globally also fell in 2024 by 10%, with 1,215 deals in total. While India had the greatest number of new listings at 327, the US claimed the most proceeds at $27.6bn.
Grant Humphrey, EY Partner for strategy and transactions, said: “Shifts in monetary policies, rising geopolitical tensions, digital transformation, and new ESG priorities are continuing to reshape the IPO market globally. At the same time, changing dynamics of a connected but increasingly diverse global market mean local economic conditions and regional priorities are playing a greater role in the decision to go public. Despite these changes, there’s growing optimism for a stronger global IPO performance in 2025, with improving economic conditions, supportive monetary policies, and strong liquidity creating opportunities.”