Number of Companies Departing the London Stock Exchange Hits 15-Year High

Forex - Former CEO of the London Stock Exchange Group, Xavier Rolet, warned that the London Stock Exchange has become "extremely uncompetitive." Rolet, who led LSEG from 2009 to 2017, stated that the sluggish trading in London poses a "real threat" of more UK firms leaving the London Stock Exchange to achieve better returns abroad.

Rolet's comments follow the confirmation of plans by FTSE 100 equipment rental company Ashtead to relocate its primary listing to the U.S., following in the footsteps of some other large companies in recent years. According to LSEG data, 88 companies either delisted or moved their primary listing away from London’s main market this year. The figures, initially reported by the Financial Times, indicate the most significant net outflow of companies from the market since the financial crisis of 2009. Additionally, the number of new listings is at its lowest level in 15 years, as companies considering IPOs are hesitant due to relatively low valuations compared to other financial centers.