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UK IPO Market Woes: Companies Flee London Exchange
10 Aug
Summary
- UK companies increasingly list abroad, share at home fell significantly.
- More delistings than new listings on London Stock Exchange since 2022.
- Government introduces reforms to boost London's listing appeal.
The UK government faces challenges attracting private equity-backed companies to its stock exchange, with British firms increasingly favoring alternative exit strategies over public listings.
Over the past five years, only eight UK-headquartered companies with private equity backing have pursued an initial public offering (IPO). Notably, two companies that priced in the current year did not list in London.
The trend of UK companies listing abroad is accelerating, with the proportion of domestic listings dropping from 71% in 2019 to 46% in 2025. This decline is exacerbated by more delistings than new listings on the London Stock Exchange since 2022.
Take-private deals have surged, accounting for approximately 20% of realized deal value in UK private equity in H1 of this year, up from about 13% in 2025. Secondary buyouts are now a dominant trend, featuring in six of the top ten deals in H1.
In an effort to revitalize the market, the UK government has implemented several measures. The Financial Conduct Authority has simplified IPO rules, and a three-year stamp duty exemption for newly listed companies was announced in 2025. A new listings task force and concierge service are also in place.
