London Stock Exchange sees plunge in shares listing applications

According to data from the Financial Conduct Authority, the number of requests to float on the main market of the LSE dipped to its lowest level in at least six years with only 56 companies applying to list their shares on the LSE’s main market between January and November 23 this year. IGTV’s Angela Barnes looks at why.

(AI Video Summary)

Decline in London Stock Exchange shares listing applications

The London Stock Exchange (LSE) has seen a major drop in the number of companies applying to list their shares this year. In fact, it's the lowest it's been in at least six years, according to the Financial Conduct Authority. Only 56 companies have applied between January and November 2021. This is a big problem for the LSE, which has been trying to attract more companies and boost the city's reputation. Even well-known companies like TUI, ARM, and CRH are considering leaving the London Stock Exchange for alternative listing options, like New York.

Calls for sweeping reforms

The bosses of FTSE 100 companies have been urging the government to take action and fix the declining situation. They argue that it's become a vicious cycle – fewer companies are listing on the LSE, which makes it less attractive for others to join. So, they're calling for sweeping reforms to revitalise London's stock market and make it more appealing for high-profile companies. The fact that only 56 companies have applied to list this year is a clear sign that something needs to change.

This decline in applications and the potential departures of major companies like TUI, ARM, and CRH highlight the urgent need for reforms. London needs to find a way to attract and keep these big players in its stock market. Otherwise, it risks losing out on valuable investment. The LSE and the city as a whole need to make changes and put in efforts to make London's stock market more appealing to companies. It's crucial for London's reputation as a global financial center.