More companies are leaving the London Stock Exchange with few companies listing to replace them. This is an historic trend that was partially reversed by the Covid floats, where companies would list on the back of excellent trading updates and mediocre past performance, and try to convince investors the growth was here to stay rather than a fleeting period.
And it worked. Funds and investors piled into stocks, many of which have already gone bust. Anyone remember MADE.com? Parsley Box? Or the companies who listed and joined the 90 per cent club – stocks who have seen their prices decline by 90 per cent? Musicmagpie, ProCook, there are many…
There are also plenty of stocks now leaving the market because private equity is taking out companies that are undervalued by the market. Accrol (ACRL) is the latest, where management has recommended an 11.8 per cent premium offer to the prevailing share price at 38p.