London IPOs in decline since Brexit vote as British companies flock to New York

London’s IPO market share has dropped since the Brexit vote as British companies seek to list in New York.

Listings in the UK are at their lowest in over 10 years despite the government relaxing some rules to attract IPOs and make London a post-Brexit listings favourite. 

IPO activity in the country dropped to about 23 per cent of Europe’s IPOs in the five years following Britain’s decision to exit the EU in 2016, from near 30 per cent in the five years before it, Bloomberg data showed. 

The UK’s IPO share was $76.4bn of Europe’s total share of $328.6bn from 2017 to 2021. It was $94.1bn of Europe’s total $323.5bn from 2011 to 2015.

The first half of 2022 has seen IPOs worth just $800m in the UK compared with $6.5bn total in Europe, six years after the Brexit vote. Six before the vote in the second half of 2010, the UK’s IPO share was $7.3bn compared to total Europe IPO activity of $25.8bn.

Major IPO failures recently have further dented confidence in the UK market. Companies like Deliveroo plc and THG plc have fallen over 60 per cent since their IPOs.

Record inflation and fears of a recession in the UK have further dented market optimism for IPOs.