Copy article

London's financial markets: SOS

ended 07. June 2025

A trio of recent listing decisions by major companies (Wise, Cobalt Holdings and Shein) has cast a fresh spotlight on the difficulties facing London’s public equity markets. Each of these firms has either pulled plans to list in London or indicated a preference for an overseas venue, reinforcing concerns about the City’s waning appeal as a destination for high-profile IPOs.

Wise, the UK fintech group known for its international payments platform, recently announced plans to shift its primary listing from London to New York. Despite having the majority of its operations outside the U.S., Wise cited deeper capital markets and stronger investor demand stateside. Cobalt Holdings, a Glencore-backed cobalt investment vehicle, abandoned what would have been London’s largest IPO in over a year, citing insufficient investor appetite. Meanwhile, Shein, the fast-fashion giant with roots in China and headquarters in Singapore, dropped plans for a London listing in favour of Hong Kong after facing regulatory and political headwinds.

These cases underscore a critical imbalance in the UK’s approach to capital markets reform. While the public equity market clearly needs urgent structural support to remain competitive globally, much of the recent policy focus has been on channelling institutional capital—particularly from pension funds—into private markets. This may help stimulate growth in the longer term, but does little to address the immediate challenges facing public market listings in the UK, such as liquidity constraints, valuation gaps, and regulatory friction.

What do you see as the main factors driving UK companies to seek listings overseas rather than in London?

What specific policy or regulatory changes would make London a more attractive listing venue?

Is the UK regulatory environment seen as a barrier to public listings? If so, what changes would you prioritise?

Please share any other thoughts on an issue which seems to be approaching crisis point.

4 responses from the Newspage community

Copy all

Star Quote
Copy

Faisal Sheikh
Managing Director at Monmouth Capital
The government has put pressure on pension funds to increase allocations to private assets. I think it's aiming for the wrong goal. It's the decline in public markets in the UK which needs addressing. Make London an attractive place for public listings and it will automatically drive improvements in private markets, since IPOs remain an important exit path for venture capital and private equity funds.

Asking regulators to come up with ideas to help is not the answer. We need drastic action, such as immediately scrapping stamp duty on share transactions, that sends a signal to international investors that we are serious about wanting them to do business here. Otherwise, London will continue drifting into irrelevance. It doesn't have to be this way.
Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
Listings are like beauty parades and London has been neglecting herself for sometime. She needs a makeover and she needs one fast. The government needs to draw on the experience of British entrepreneurs otherwise we will forever be picked last.
Copy

Editor
Tony Redondo
Founder at Cosmos Currency Exchange
Why would an entrepreneur list in London nowadays? The US and Hong Kong markets offer better liquidity, higher valuations, lighter regulation, and more favourable tax regimes. UK investor risk aversion and low pension fund equity allocation (2% vs. 50% in the 1990s) worsen the City’s appeal. To revive London, streamline prospectus rules, boost pension fund investment in UK equities, ease compliance for small firms, and promote tech. Regulators must cut high costs and strict governance by finalizing prospectus reforms, simplifying transaction rules, and improving data access. Balancing flexibility with investor trust is key to reversing the 40% drop in listed firms since 2008. Lighter business taxes could spark entrepreneurial “animal spirits” for UK growth.
Copy

John Woolfitt
Director at Atlantic Capital Markets
There are several key factors pulling IPO’s away from the Uk markets at the moment, and whilst Uk politics may be some of the concern, mainly on the lack of clarity on future tax for business’ and lack of perceived growth opportunities there is also other key factors to consider:- Higher Valuations in U.S. Markets in certain key sectors such as tech, biotech, and high-growth sectors, U.S. investors are also generally more accustomed to backing growth over profitability in the short term which in turn offers a more conducive environment for new floats. Add this to the Perceptions of a More Dynamic Market Environment in the US compared to the more conservative investor environment in the Uk and the fact a listing on the US markets can boost global brand credibility, particularly for companies with international ambitions and its easy to see the appeal.