London Stock Exchange Under New York Lights: A Mass Exodus Begins
Hold onto your portfolios, because the London Stock Exchange (LSE) is turning into a passport office for entrepreneurs chasing better returns out West.
Why Big Names Are Packing Up
- 44 companies have already relocated or are planning to sink their sails in the U.S. markets.
- Another 44 firms are delisting to pursue lucrative takeovers or premiums from buyers eyeing the London exchange.
- In the last month alone, the combined market value of these leavers surpassed £100 bn.
Top of the Line Movers
Here’s a quick rundown of the key players stout enough to ditch London:
- Ashtead (market cap £23 bn), poised to make the leap to New York.
- UK’s travel giant TUI has already crossed the Thames, relocating to Frankfurt and launching on MDAX as of 24 June 2024.
- Shell—our beloved £152 bn behemoth—has sparked a panic among the crowds. “If it’s gone, we’re out of the game,” writes a frantic journalist.
Economic Signals: A Whopping Discount
Goldman Sachs warns that 52% of LSE shares trade at a steep discount compared to U.S. counterparts, stretching out the cost of equity. A shaky, illiquid market means new listings might need to do a deep-dive into discount territory to stay afloat.
Thought Leaders Share Their Viewpoints
Harvey Jones, a columnist for the Express, stresses that “the pressure’s mounting.” He’s calling on Chancellor Rachel Reeves to step in before the FTSE spirals into an irrevocable death spiral.
Xavier Rolet, the former chair of the LSE Group, cautions that this sentiment signal could become a “real threat” of increasing delistings, especially if companies chase better returns elsewhere.
Chief of LSE, Julia Hoggett: A Cautionary Tale
Julia Hoggett points to the stark reality: out of 100 UK firms raising > £100 million over the past decade, only 20 went to the U.S. market—out of those, eight have already delisted; four are thriving, but the remaining nearly half have slumped by an average of 80%.
Bottom Line: Stay Informed, Stay Ahead
The exodus is straightforward but impactful—each company leaving London is reshaping the market dynamics and the future of the FTSE. As the drama unfolds, you can’t afford to stay on the sidelines. Grab your subscription today and keep the pulse on these national buzzers—no more missed beats.
