The UK market is feeling sorry for itself. After all, life doesn’t feel much fun as America’s humdrum cousin, watching from afar as New York woos glamorous tech stocks and go-go pharma groups. The envy has deepened since a flurry of homegrown businesses moved or started to consider moving their primary listings across the Atlantic. But notwithstanding the flaws of the City of London, is there a risk that the American dream proves just that – a false reality?
The health of UK public markets has been under scrutiny since Brexit. But things stepped up a gear in March when it was revealed chip designer Arm planned to list solely on Nasdaq, defying hopes of a dual listing in London. CRH (CRH), the world’s biggest building materials supplier, decided to drop its UK listing around the same time. Gambling group Flutter (FLTR) could be next in line for the exit to the US.
The global initial public offering (IPO) slowdown is increasing the City’s anxiety levels: companies are leaving and not being replaced. UK IPO proceeds in the first quarter of 2023 were 80 per cent lower than the equivalent period in 2022, and 99 per cent lower than the record sums generated at the start of 2021.