London continues to maintain its position as Europe’s premier hub for the sale of shares in publicly listed companies, with a recent surge in secondary deals compensating for a scarcity of initial public offerings (IPOs) in the UK.
Data compiled by Bloomberg indicates that there have been $11.3 billion worth of such share offerings in London thus far in 2024, marking an increase of nearly 24% compared to the previous year. Despite the absence of significant IPO activity, the volume of share sales in London significantly surpasses that of any other European exchange.
“We are well ahead of the other markets that we are often compared with, whether it’s Amsterdam or Frankfurt,” stated Dru Danford, head of investment banking at London-based stockbroker Liberum. “London consistently outperforms all its European counterparts.”
Two significant sell-offs of existing stakes have dominated London’s activity for the year. GSK Plc divested from Panadol painkiller maker Haleon Plc, yielding gross proceeds of approximately £3.9 billion. Additionally, a consortium of former owners of Refinitiv, a data firm acquired by London Stock Exchange Group Plc in 2021, sold off the remaining portion of their stake in LSEG for £1.6 billion, following a similarly-sized deal earlier in the year.
According to data, London has seen a higher level of activity from companies this year, with share sales involving over 60 firms, contrasting with 12 on the Paris exchange and just four in Frankfurt.
Julia Hoggett, chief executive officer of the LSE, remarked on Monday that the “public narrative” has underestimated London’s capital market strength. She stated, “As of the first of May, London was the fifth largest exchange in the world by total capital raised year to date, only behind NYSE, Nasdaq, and the two Indian exchanges.” She added, “There are no other European exchanges in the top 10.”
This underscores London’s dominant position in the European equity capital market, particularly during a global downturn in fundraising attributed to a surge in inflation and interest rates since 2022. In 2021, companies raised £39.2 billion pounds in London, followed by a 61% decline the subsequent year, as indicated by Bloomberg data.
Notable companies conducting follow-on offerings in London this year include real estate group Segro Plc and utility Pennon Group Plc. Share sales have also been observed in auto parts maker TI Fluid Systems Plc and greetings card retailer Moonpig Group Plc. Another significant deal was Delivery Hero SE’s sale of an £83 million portion of its stake in takeout delivery firm Deliveroo Plc, marking its exit from the holding.
In US dollar terms, Paris ranks second in fundraising, reaching $3.4 billion. This was primarily fueled by Sartorius Stedim Biotech’s €1.2 billion ($1.3 billion) share sale and by French investment firm Wendel SE’s divestment of its stake in goods inspection company Bureau Veritas SA for approximately €1.1 billion following a surge in its shares.
Conversely, London’s IPO activity has been sluggish. Its share of the market for new offerings dwindled to 2% this month, marking the smallest percentage in decades, as IPOs on the continent experienced a resurgence after a period of stagnation.
