London Stock Exchange owner pledges ‘aggressive’ IPO push after ‘encouraging’ signs of revival
The owner of the London Stock Exchange said it was seeing an “encouraging IPO pipeline” for the year ahead today as its boss pledged an “aggressive” push to revive the market from a historic slump in listings last year.
In its preliminary full-year results this morning, the London Stock Exchange Group (LSEG) said it had suffered from an “uncertain environment” last year as profit before tax contracted 3.2 per cent to £1.2bn in the year to the end of 2023. Total income for the firm rose 8.2 per cent to £8.4bn.
The group, which has pivoted heavily towards its data business in recent years, now makes just around four per cent of its revenues from its embattled flagship bourse, which was hit by a drought in IPOs last year.
However, speaking with reporters today, group chief David Schwimmer dismissed suggestions that the firm had been “complacent” and said it was primed for an “aggressive” push to revive its IPO pipeline this year.
“There is no sense sense of complacency at LSEG or at the London Stock Exchange. We have a very active and aggressive team,” Schwimmer said. “We are actively investing in our capabilities, we are actively engaged with the companies that list here and companies that could potentially list here.”
In a statement alongside its results this morning, Schwimmer said the group was “seeing an encouraging IPO pipeline” for the bourse after a downturn over the past 12 months.
The London Stock Exchange has already hosted a number of floats this year including the Kazakh flag carrier Air Astana, which debuted earlier in February. The Chinese fast fashion giant Shein was also reported to have met with bosses from LSEG to discuss a potential float in what could be the second largest ever IPO on the market.
Schwimmer declined to comment directly on the potential of Shein to list on the market but said “we have been welcoming companies from around the world for hundreds of years and we look forward to continuing to do so”.
The full-year numbers come after a tumultuous year for the London Stock Exchange owner in which it has been accused of pivoting too sharply away from its flagship bourse.
Just 23 firms floated on the London Stock Exchange’s two markets in 2023, a 49 per cent slide from the 45 registered in an already quiet 2022, EY found in its latest IPO Eye report.
London has also been dealt a series of blows by firms swapping their listings for other exchanges or exploring dual listings across the Atlantic. Gambling firm Flutter recently shifted its primary listing to the US while travel firm Tui ditched its dual listing in London for Frankfurt.