The Resurgence: London's Stock Market in 2025

While there is no question that 2024 was a difficult year for one of the world's oldest exchanges, there are reasons for optimism, as Mark Freebairn, Rebecca Agnew, Head of Board Analysis and Knowledge, and the Odgers Board Practice discuss. 

In 2024, London experienced the largest exodus of companies since the financial crisis. According to LSEG data, 88 companies either delisted or transferred their primary listing away from London’s main market. At the end of the year, Ashtead Group – listed in London since 1986 – announced its move to New York. London-listed firms also saw a wave of takeover deals amounting to approximately £52bn, with high-profile examples including DS Smith, Hargreaves Lansdown, Redrow and Virgin Money. 

IPO Market 

London’s struggle to attract IPOs has been well-documented. Bloomberg data shows that London fell to 20th place in the global IPO rankings in 2024, with only 18 companies listing during the year.  

However, there are signs of recovery. Peel Hunt observed that “2024 showed positive, although gradual, progress in the IPO market and we expect this to continue into 2025, albeit from 2Q onwards”. The year ended on a high with Canal+’s listing, the largest of the year, heralded by Rachel Reeves as a ‘vote of confidence’ in the UK stock market. Other significant IPOs in 2024 included Raspberry Pi, and 2025 may see high-profile listings such as Shein. 

Market Challenges and Opportunities 

London has also been affected by broader macro-economic factors, including Brexit, economic uncertainty and recent market events such as the UK and US elections and the UK budget. Despite these challenges, London has performed well compared to its European counterparts. The latest LSEG update indicates that London retained its status as Europe’s top venue for equity capital, raising more than the next three largest European exchanges combined. 

The UK has faced a perfect storm in recent years, but ‘a smooth sea never made a skilled sailor’. Recent challenges have offered an opportunity to re-shape and reform the London market. 

As Rachel Reeves said at the time: “These new rules represent a significant first step towards reinvigorating our capital markets, bringing the UK in line with international counterparts and ensuring we attract the most innovative companies to list here”. Reeves’ commitment to ‘regulate for growth,’ along with her plans for pension ‘megafunds’ and the establishment of a ‘world first’ private stock market could also have a significant impact. 

It is also worth noting that concerns about the future of listed companies are not unique to the UK. In his annual letter to shareholders in April 2024, Jamie Dimon, Chairman and Chief Executive Officer of JPMorganChase, expressed concerns about shrinking public markets: “From their peak in 1996 at 7,300, U.S. public companies now total 4,300 – the total should have grown dramatically, not shrunk”. 

As Dame Julia Hoggett argued in a recent Sunday Times interview: “If you care about companies being run well, the public market should be the source of that scrutiny”. After all, good governance standards are central to the London market's attractiveness to issuers and investors. 

Hoggett also discussed her desire for a cultural shift – for people to take pride in investing in the stock market. While the summer of 2024 will be remembered for crowds gathering to watch Euro 2024 across the country, Hoggett launched a campaign for the London Stock Exchange headquarters to have its very own big screen (much like the Nasdaq MarketSite in Times Square) to celebrate the market’s success stories and counter the pessimism about its future. 

Regardless, London should not downplay its significance. The UK remains the sixth-largest economy globally by GDP, and London is still the third-largest capital-raising market in the world. Eben Upton, CEO of Raspberry Pi, remarked in a Sunday Times interview in 2023: “There’s good, smart money in London […] I think this narrative that you have to run off to the US feels a little overblown”.  

Talent and leadership 

From a leadership perspective, the UK benefits from a pool of world class, highly skilled talent and continues to attract a wealth of global talent. London ranked first for ‘magnetism’ in the 2024 Global Power City Index (GPCI) – for its power to attract people, capital and enterprises from around the world. According to the report: “Despite challenges such as the UK’s exit from the EU, changes in work styles triggered by the COVID-19 pandemic, and rampant inflation caused by soaring global energy prices, London continues to demonstrate strong overall performance, holding onto the #1 position for the 13th straight year”. 

Future outlook 

Looking ahead, there are reasons to be positive. Peel Hunt emphasised an upbeat tone on the UK outlook in its latest IPO Speedometer, predicting that UK IPO activity is expected to ‘spring’ back into life in the second quarter this year: “A number of issuers are currently monitoring windows in 2Q, which we expect to be the first real test of the UK IPO market in 2025. We expect the pipeline to show a broadening of activity, which was focused on founder-led mid cap issuers in 2024, to more private equity and corporate backed companies in 2025”. 

EY’s recent IPO update highlighted London’s “unique strengths – including a global reputation for financial expertise, strong corporate governance, and a robust legal framework – remain competitive advantages” and that “by leveraging these strengths and implementing strategic reforms, London can reassert itself as a leading global destination for IPOs”. 

While challenges remain, the foundations for a resilient and dynamic market are firmly in place. 

Odgers Berndtson plays a key part, assisting companies in assembling diverse, skilled, and forward-thinking boards capable of adapting to complex global markets.  

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