Just Eat and Tui abandon UK stock market amid crisis

In 2024, the UK experienced significant turbulence in its stock market as the London Stock Exchange faced the largest exodus of companies since the global financial crisis. Many notable firms, including Just Eat, Flutter Entertainment, Tui, and Ashtead, announced plans to abandon their primary listings in London, opting instead for markets with perceived greater liquidity and better valuations, particularly in the US. This trend saw a total of 88 companies either delist or switch their main listings from the UK, according to auditing firm EY's recent analysis. The move was largely attributed to declining liquidity, lower valuations, and growing investor appetite for capital access in other markets. The reaction to the market conditions reportedly pushed some firms to consider alternatives that could offer more robust trading environments. Despite the sharp decline in local listings, the year concluded with some positive news for London's financial landscape. The initial public offering (IPO) of Canal+, a major French TV and production company, raised £2.6 billion in December, representing the largest listing in 2024 and helping to increase the total fundraising in the UK market to £3.4 billion, tripling the amount raised in 2023. Scott McCubbin, the IPO lead for EY in the UK and Ireland, characterized 2024 as generally quiet for the LSE, attributing the subdued activity to ongoing geopolitical uncertainties, slower economic growth, and reductions in investment appetite among domestic pension funds. As the companies exited the London market, a response from various stakeholders, including the Treasury, suggested efforts to revamp the UK's market appeal. Officials reiterated their commitment to attracting investment and businesses to the UK, announcing strategies such as pension megafunds designed to unlock greater capital for domestic companies. This coincided with a significant change in UK listing rules that aimed at simplifying the initiating processes for IPOs and mitigating concerns involved in cross-border transactions, which had become an obstacle for firms like ARM that chose to list in the US instead. The combination of these reforms may potentially enhance the attractiveness of the UK market, paving the way for a rebound in listings and financial activity as the economy stabilizes in the wake of political certainty following elections. As we look towards 2025, there can be cautious optimism regarding London’s financial aspirations. Companies and analysts project that with regulatory advancements and a more favorable investment climate, the conditions could align for an uptick in public offerings and greater overall engagement with domestic markets. The hope remains that the local exchange will reclaim its competitiveness and provide a viable landscape for both new and existing businesses seeking access to capital amid shifting market dynamics in the global economy.