London Stock Exchange ends a challenging 2024 on a high after Q4 IPO boost
During one of the quietest years on record, the London Stock Exchange was buoyed by the listing of Canal+ in the final quarter of 2024. The listing, which raised £2.6bn, is the largest debut on the London Stock Exchange since 2022.
There were eight IPOs in Q4 2024 – three on the main market and five listings on AIM, raising £2.8bn. This brought the total number of listings on the main market and AIM this year to 18 – the lowest volume of listings since EY started to record this data in 2010.
Despite the low volume of listings in 2024, £3.4bn of proceeds were raised over the year, a 256% year-on-year (YOY) increase on the £953.7m raised from 23 issuers in 2023.
The London Stock Exchange also saw 88 companies delist or transfer their primary listing from the main market in 2024. A number of these companies cited declining liquidity and lower valuations compared to other markets as reasons for moving away from the London Stock Exchange, particularly the US which offers deeper capital pools and higher trading volumes.
Scott McCubbin, EY UKI IPO leader, comments: “It’s been quiet year for the London Stock Exchange and, while Q4 activity picked up significantly, headwinds facing the UK’s listings market remain. Ongoing geopolitical instability, slow economic growth and a diminished appetite for domestic equities among pension funds have impacted valuations and liquidity. We also saw the largest outflow of companies from the main market since the global financial crisis as companies sought access a deeper pool of investors and the prospect of improved liquidity on other exchanges.
“But as we enter 2025, there are reasons for cautious optimism. A stabilised domestic policy environment post-election, robust pipeline of deals, and listings reform are creating opportunities to restore London’s competitiveness, which could drive a rebound in activity in H1 2025. Businesses eyeing IPOs will be closely watching the market to time their public offerings effectively.
“While London faces strong competition from other financial centres, its unique strengths – including a global reputation for financial expertise, strong corporate governance, and a robust legal framework – remain competitive advantages. By leveraging these strengths and implementing strategic reforms, London can reassert itself as a leading global destination for IPOs.”
Global IPO volumes fell 10% with proceeds down by 4% YOY
The global IPO market recorded 1,215 deals, raising US$121.2bn in proceeds in 2024, falling slightly behind 2023 levels.
For the first time, India has risen to the top position globally for IPO volume, recording 327 deals in total, whilst the US reclaimed the top spot globally for IPO proceeds for the first time since 2021, raising $27.6bn in 2024. It contributed to a strong recovery for the Americas region which saw 205 IPOs in total raising US$33.1bn.
IPO activity in Asia-Pacific saw a 35% decline in deals and 51% decline in proceeds YOY. This was driven by tighter regulations in the Chinese mainland contributing to its weakest IPO performance in a decade, and Australia recording its sharpest decline in IPO volume in more than 20 years.
Public listings of private equity (PE) and venture capital (VC) backed portfolio companies generated 46% of total global IPO proceeds in 2024, highlighting their substantial contribution to global IPO activity. When broken down by sector, the technology, media and telecommunications (TMT), industrials and consumer sectors dominated global IPOs, with a combined 60% share across all sectors by both number and proceeds.
Grant Humphrey, EY partner, Strategy and Transactions, said: “Shifts in monetary policies, rising geopolitical tensions, digital transformation, and new ESG priorities are continuing to reshape the IPO market globally. At the same time, changing dynamics of a connected but increasingly diverse global market mean local economic conditions and regional priorities are playing a greater role in the decision to go public. Despite these changes, there’s growing optimism for a stronger global IPO performance in 2025, with improving economic conditions, supportive monetary policies, and strong liquidity creating opportunities.”
