The state of capital markets in the United Kingdom is perilous. IPO activity fell to its lowest levels in 30 years.
During the first half of this year, five lists would have increased only 160 million pounds (approximately $ 215 million) below amounts until 1995, according to the Data provider Dealiogic.
The London Stock Exchange underwent several years of decline after reaching a post-comfortable peak in 2021, when 142 transactions collected a total of $ 26 billion. On the other hand, last year saw 16 transactions which increased $ 3.5 billion in figures by ION Analytics, a drop of 87% compared to the levels of 2021. Analysts claim that the late capital markets in London highlight intense competition between the main financial centers.
British shares are negotiated at around 50% of comparable American actions, and deep local money basins that have once supported London have shrunk, explains DAT NGO, a CPA and a personal finance professional in approved accessory companies. “This difference indicates that the liquidity is thin and that the domestic demand is low – the turnover of the food feeds the delivery.”
The recent Introduction Trellings in New York include Wise, while the Cobalt unit in Glencore has removed its planned list. However, despite the concerns about the UK’s global position, reforms such as updated registration rules and rationalized procedures are gaining ground to make its clues more attractive.
But the simplification of procedures in itself offers only a limited long -term solution, said Nik Colbridge, partner of the dentons law firm. “For most transmitters, the comparison between the premises will be based on predicted multiple trade, rather than the hoops which must be jumped to float.”
For London, the challenge is to encourage a more active participation of funds on the markets still dominated by passive pension funds, known as Colbridge. Inherited taxes – such as stamp duties at 0.5% on each purchase on a scale – continue to frustrate investors.
The 2016 United Kingdom’s decision to leave the European Union eroded London’s reputation as a pre-eminent investment destination, going to other European exchanges. However, in 2024, London recovered its status from the largest market for European equities, exceeding Euronext Paris
Although there is a quiet optimism among investors that the United Kingdom is on the right track to revise its capital markets, it seems that there is still a way to go.