London stock exchange faces major exodus amid competitiveness concerns

(MENAFN) The previous chief of the London Stock Exchange Group (LSEG) has issued a stark warning that the flagship London bourse is becoming “deeply uncompetitive,” as it faces the largest wave of departures since the 2009 financial crisis.

Xavier Rolet, who led LSEG from 2009 to 2017, highlighted sluggish trading activity in London as a “real threat,” cautioning that more UK-based firms may shift their listings abroad in pursuit of better returns.

His remarks follow the decision by FTSE 100 equipment rental company Ashtead to move its primary listing to the United States, echoing a growing trend of large firms relocating in recent years.

LSEG data reveals that 88 companies have either delisted or moved their primary listings away from London’s main market this year, while only 18 firms have listed.

As first reported by the Financial Times, this represents the most significant net outflow from the London market since the financial crisis.

Additionally, the number of new listings is set to hit a 15-year low, as companies contemplating IPOs are deterred by relatively low valuations compared to competing global financial hubs.

This year alone, companies representing over £100 billion (USD126.24 billion) in market value have either planned to delist or agreed to takeover deals, often at substantial premiums, signaling a continued exodus from London’s stock market.

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