More firms leave in takeovers than join through new flotations in a decade of doom for the London Stock Exchange
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The London Stock Exchange lost more companies to takeovers than it gained through new flotations over the last decade, according to analysis seen by the Mail. Figures from the financial data group Dealogic show 585 companies worth a combined total of £779billion have left the London market due to being bought either by competitors or private equity since 2015.
That compares to 567 that joined either the LSE’s main market or junior division AIM over the same period. Those firms had a combined value of £66billion – far lower than those leaving because many of the new joiners were young companies looking to grow.
The findings will make for grim reading amid concerns over the health of the stock market, the City and wider UK economy. While the number of companies with shares trading on its equity market has been shrinking due to takeovers, the LSE has failed to attract replacements through initial public offerings (IPOs), with competitors like the New York Stock Exchange and Nasdaq consistently beating it to host flotations.
Exodus: Figures show 585 companies worth a combined total of £779bn have left the London market due to being bought either by competitors or private equity since 2015. Samuel Kerr, at Dealogic’s owner ION Analytics, said the LSE has struggled to attract overseas companies to list in London in recent years.
