The London Stock Exchange has had a bumper fundraising year in 2021 despite concerns about Brexit, setting a new level for Initial Public Offerings (IPOs)since 2007.
In 2021, the 122 companies listed on the exchange raised over £16.8bn, the LSE said – realising more equity capital than the Amsterdam and Paris exchanges combined.
In a statement the group said the results confirmed “the UK’s position as one of the top global financial centres and a driver of the UK domestic economy – providing capital to the fast growth companies of today and tomorrow, as well as existing businesses.”
CEO of LSE plc, Julia Hoggett, said: “2021 has demonstrated the strength of the UK capital markets with our most active year since 2007.
“It has also highlighted the vital role LSEG’s capital markets play in supporting innovation, growth and the transition to a low-carbon economy.”
London’s growth market, AIM, also raised £9bn raised in IPO and follow-on capital in 2021.
LSE said London had retained its reputation for attracting international companies with 2021 seeing new listings from the US, Canada, Australia and across the EU
In 2021, oil giant Shell abandoned its dual listing structure to pick London as its main base over the Netherlands, as did Anglo-Dutch firm Unilever.
However, some commentators warned the LSE would face further pressure to hold its position at the top of the European charts as competition intensified with the Brexit rollout.
They pointed to the decision made by Ryanair who say they are delisting from the London Stock Exchange because of foreign ownership and control rules that apply after Brexit.
The UK Treasury says it is reviewing the country’s financial regulation to increase competitiveness: “we are looking forward to building on this momentum and on recent regulatory changes in the UK to ensure London is an even more compelling capital raising venue.”a.
Other reviews such as the Future Regulatory Framework Review are also underway with Chancellor Rishi Sunak heralding a “once-in-a-generation” opportunity to improve growth and competitiveness.