On May 14, 2024, LSEG signs can be seen on the screen of the lobby of London London Lobby.
Hannah McKay | Reuters
London’s listing problems are not limited to the capital, but are also weak in the United States and Asia, the head of the London Stock Exchange said.
According to EY, the London Stock Exchange had only 18 IPOs on the London Stock Exchange last year, eight of which were in the fourth quarter.
But LSEG CEO David Schwimmer said it was not a unique problem.
“We’ve seen a very gentle IPO environment around the world, and that’s been in New York, it’s been in Hong Kong,” he told CNBC. “It’s getting a lot of attention.”
This has caused concern that London is losing or losing its magic. Mining Giant Glencore After staying away from people like people, considering moving Confusing entertainment,,,,, tui and Eat only takeout. In fact, LSE lost 88 companies last year, whether by recommending elsewhere or transferring the main list, the highest since 2009.
Schwimmer warns those who look elsewhere.
“When you talk about a company going to New York, it’s not a pretty situation,” he told CNBC’s “Squawk Box Europe.”
“If you look at the last 10 years, 20 UK companies are listed in New York and raised over $100 million. Of the 20 companies, 4 are trading, about nine currencies, and the rest are trading volume down by more than 80%. So, I think you have to be cautious about the narrative that the grass is always greener.”
EuroNext CEO Stéphane Boujnah expressed his concerns about the British capital, telling CNBC’s “Squawk Box Europe” that “London has lost leadership in stock liquidity”.
A powerful pipeline
Although London listings fell to decades lows last year, earnings fell by nearly one-fifth compared to 2023 The LSEG head is optimistic about this year, saying the pipeline looks much better. The LSEG head is optimistic about this year, saying the pipeline looks much better.
“If you look at the raising of the London Stock Exchange (IPO) and it’s the subsequent IPO, then the market is doing very, very well, with the raising of capital on the SELL raising more funds in total than the next three European exchanges,” Schwimmer said.
Goldman Sachs There is also a bullish view on the UK’s IPO landscape. Richard Cormack, head of EMEA stock capital markets at Goldman Sachs, said in February that he expects IPO activity to take place as political uncertainty after last year’s elections faded.
While some British and European companies may still be attracted to the United States, Colmark believes it is unlikely that we will see British or European non-technical, non-parenting companies listed outside their domestic markets.
Come back in Hong Kong?
The idea that the United States is the preferred destination for cross-border lists is also challenged by new competitors on site: Hong Kong.
The city is preparing for a $20 billion listing this year According to the Financial Timesexpected to take advantage of the rising trade tensions between the United States and China.
Shares in Mixue, the largest foam tea chain in China Their Hong Kong debuts over 40% Earlier this month. There are 5,200 subscriptions listed in Hong Kong, while the international products are more than 35 times more.
Hong Kong Exchanges and Liquidation CEO Bonnie Chan told CNBC’s “Squawk Box Asia” She saw a surge in demand among global investors.
“We see much higher interest in the United States, Europe and the rest of the world,” she said. “Of course, investors can accept these large IPOs.”
