London Stock Exchange Experiences Surge in Listings and Success in Fundraising

The London Stock Exchange is off to a strong start in 2025, with two companies listing on the main exchange and five joining AIM. The LSE's attractiveness has improved after years in the doldrums, with several high-profile names expressing interest in listing, including Waterstones and Monzo. The IPOs indicate a shift in the LSE's appeal, with 18 companies listing last year, the lowest in 15 years. Haleon's $2.4 billion stake sale to Pfizer also showcases the LSE's reputation for deep, liquid markets.

The London Stock Exchange (LSE) is experiencing a promising start to 2025, with a surge in interest from companies looking to list. According to a report by This is Money [1], two companies have already listed on the main exchange, and five have joined AIM, the junior growth market. This marks a significant increase from the 18 companies that listed in the entirety of 2024, which was the lowest number in 15 years [1].

The renewed interest in the LSE can be attributed to its reputation for deep, liquid markets. This was exemplified by Pfizer's recent acquisition of a 7% stake in Haleon, the FTSE 100 consumer healthcare giant, for £2.4 billion. The transaction was facilitated with ease, with Pfizer placing 618 million shares at a discount to the market price, resulting in a 0.7% increase in Haleon's share price [1].

The LSE's appeal extends beyond established companies. Several high-profile names, such as Waterstones, Monzo, Starling, Shawbrook, Ebury, Canopius, Zilch, and Metlen Energy & Metals, have expressed interest in listing on the exchange [1]. These companies represent various sectors, including retail, finance, and energy, and their potential listings would contribute to the LSE's diverse portfolio.

The LSE's revival of confidence and attractiveness is not limited to its listings. Rio Tinto, the mining giant, has urged shareholders to vote against a resolution from hedge fund Palliser Capital to review the company's dual listing in London and Sydney. Rio described the proposal as "value destructive" and "unfounded and misleading," highlighting the confidence the company has in the LSE [1].

This positive momentum for the LSE is a welcome development, following years of lackluster performance. In 2024, only 18 companies listed on the exchange, sending London to 20th position in Bloomberg's global listings report [1]. However, with the recent surge in interest and successful transactions, the LSE is poised to regain its status as a prominent global exchange.

References:
[1] Maggie Pagano. London Stock Exchange flying start in 2025: confidence returns to City. This is Money. 12 February 2025. https://www.thisismoney.co.uk/money/comment/article-14516481/London-Stock-Exchange-flying-start-2025-confidence-returns-City-MAGGIE-PAGANO.html