Making and keeping capital markets attractive

Companies looking outside UK

Against a backdrop of low investor appetite and more competitive European capital markets, the UK is looking to make listing on the London Stock Exchange more attractive for fast-growing and capital-hungry companies.

Proposals for a more flexible secondary capital raising process include improving the ability of companies to raise smaller amounts quickly and cheaply as well as supporting additional flexibility for capital hungry companies. Although London remains the most popular listing venue in Europe by number of IPOs, the continent's fastest-growing companies have been favouring other stock exchanges to raise capital. In 2021 just two out of Europe's ten largest IPOs took place in London, and none of the top five. Moreover, many of Europe's tech companies have preferred listing in the US. With th...