London IPO fundraising falls to 30-year low

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The collection of donations from primary public offers in London has declined to its lowest level in at least 30 years, in a blatant mark on the attractiveness of stock markets in the UK for companies and investors.

In the first six months of the year, the five lists in the UK markets collected 160 million pounds, which is the lowest amount in Dealgo data that dates back to 1995.

The total total decrease of 98 percent of the bumper represents six months of donation collection at the beginning of 2021 during the Koronavirus virus in the pandemic, which is less than the levels reached in 2009 in the aftermath of the global financial crisis.

The numbers come amid the increasing concern about the UK’s position as a global stock financing center, as it is increasingly struggling to compete with the attractiveness of the deep liquid markets in Wall Street.

Sharon Bell, an arrow strategy expert in Goldman Sachs, said London was “Goliath Market for stocks.” Now she said, she was in a downward cycle that creates a “bad precedent.”

“You get fewer companies, they are less liquid, and you see the best growth companies that are included elsewhere, and therefore any companies that arise hesitant in the list in the United Kingdom,” she added.

Taking into account each of the subscriptions and the issuance of follow -up by the listed companies, the opening was six months of 2025, the worst of the first half of the year that was collected since 2012, with 8.8 billion pounds. An inflation modification, this was the worst in the first half since 1995 at least.

More than half of this amount of final sales at the GSK offer came to the listed market for Haleon Consumer. The total of the two transactions was just less than 5 billion pounds.

The largest subscriptions operating in the public markets in the United Kingdom this year were the MHA PLC professional services company, which raised 98 million pounds when it was exposed to the novice investment market (AIM).

The data appears to be in hope between some London financiers that 2025 can represent a revival of the Laws ’activity in London.

The last strike of the US -UK stock market came this week with news that the CEO of the largest listed company in London, Astrazneca, spoke in particular about the transfer of the company’s list to New York – a development that led to panic among the city’s investors.

Low assessments compared to Wall Street make in London a less profitable possibility for some companies looking to collect capital. The price ratio to the profits for the FTSE 100 Blue Chip index is about 16.6, compared to 27.2 for the S&P 500, according to LSEG data.

“I am concerned about the ability to collect capital for companies in the UK, and the cost of capital raising for other countries,” Bell said.

A number of British companies, which recently in Fintech Star Wise, announced that they will transfer their basic list to the United States, while private shares acquisitions prove that they are also expensive. This week, KKR Outbid AdvenT International to take over Special Technology.

However, the analysis conducted by the Financial Times showed that European companies that add an American list often do not see a lift in their assessments.

“It looks like every week that passes, it is purchased by private stocks or raising in the United States,” said Michael Healy, the IG Investment Director, said.

“I am very concerned that we are at a critical turn in the UK market. It melts and dies.”

“I have lost this growth cycle,” said Joe Little, the chief investment employee of HSBC Asset Management, as public markets have become less liquid. “The presence of liquid capital markets is an important part of the financial ecosystems.

He added: “Small gain companies for yesterday are the mid -day companies, and perhaps tomorrow’s giants.”

This trend has been partially moved by more companies that choose to remain unlikely and finance their growth through private capital. This leaves investors with a darkest and less diverse group of opportunities, which can reduce interest in the stock market.

The Labor government proposed reforms to try to strengthen the London markets, including simplifying the requirements of listing.

But in a speech at the Work Squad Conference in the Capital Markets Makers last week, Julia Higgit, CEO of the London Stock Exchange Group, said: “We still have not seen the real transformation points in terms of risk capital flows within the United Kingdom and to the United Kingdom.”

One of the prominent reforms was the approval of the Financial Conduct Authority on the intermittent stock and capital exchange system, a new place to buy and sell risks in private companies.

But some investors say more focus should be given the public stock market.

“Almost everything [the government’s] Jerafis Williams, head of the UK’s stocks, told the UK investor, the proposals that have taken place about private companies.

“They spent their attention from the private side of things, but they did not put enough procedure in the market of the borrowed company.”