London Stock Market Sees Signs of Recovery
· music
London’s Stock Market: A False Narrative?
London’s stock market has been in decline, marked by a wave of delistings and initial public offering (IPO) snubs. However, this narrative may not be entirely accurate. The numbers show that the number of companies listed on the London Stock Exchange (LSE) fell from 2,429 in 2015 to 1,534 in May 2026. But this decline can also be attributed to a broader shift away from listing on major exchanges worldwide.
Between 1980 and 2000, an average of over 300 companies per year went public in the US; by 2025, that number had dwindled to just 90 IPOs. This trend is not unique to London’s market. The decline can be seen as part of a global shift away from traditional listings.
London’s business leaders have been quick to point fingers at their own exchange. However, Julia Hoggett, chief executive of the LSE, disputes this notion. Since joining the exchange in 2021, she has driven reforms aimed at reversing the decline in flotations and boosting capital market growth. Hoggett’s efforts have already shown results: total UK mergers and acquisitions (M&A) value more than doubled to £124.2 billion ($167.8 billion) in the first half of 2026.
The exchange has also seen a rise in acquisitions since scrapping shareholder-vote rules for most acquisitions, and smaller companies are now using AIM’s revised rules. Hoggett points to the growing pipeline of companies planning to list on the LSE as evidence of recovery. “We have the largest pipeline for IPOs since 2005,” she says.
However, Hoggett’s optimism is tempered by London’s lag behind its American counterpart in terms of listing numbers. In the first half of this year, the US completed 72 IPOs, raising $128 billion – compared to London’s seven listings worth $780 million. Hoggett attributes this disparity to a global structural shift rather than any specific issue with the LSE or UK markets.
She argues that many UK companies that moved their listings to the US have underperformed or failed outright. “We need to stop creating these false binaries,” she says, particularly since many UK companies have struggled on foreign exchanges. One of the key advantages of listing on London’s stock exchange is its ability to attract international capital – something that few other exchanges can match.
The Uzbekistan’s National Investment Fund’s decision to begin trading on the LSE earlier this year is a prime example, raising around $603 million and marking the first international equity offering from Uzbekistan. Despite these advantages, Hoggett acknowledges that the UK market still has its challenges – particularly when it comes to public investment. Stamp duty applies to buying British shares, and pension and ISA tax reliefs carry no requirement for domestic investment.
“If we are going to give you fiscal incentives to invest,” Hoggett says, “we’d like at least a portion of that to be backing Britain.” As the UK’s business leaders continue to grapple with their markets’ challenges, it is worth considering whether they’re focusing on the right issues. Is the LSE truly to blame for London’s decline, or are we simply witnessing a global trend?
Reader Views
- KJKris J. · music critic
The London Stock Exchange's recovery narrative is being quietly inflated by Julia Hoggett's reform efforts, but let's not forget that the numbers still paint a bleak picture. For all the hype about increased mergers and acquisitions value, we're talking about a market that's still struggling to match pre-2008 levels. The real test will come when London can boast more than just a handful of IPOs per year – a feat its American counterpart takes for granted. Until then, this "recovery" story remains a work in progress.
- TSThe Stage Desk · editorial
The London Stock Exchange's recovery narrative relies heavily on Julia Hoggett's optimistic projections, but what about the quality of those listings? With a mere seven IPOs in the first half of 2026 raising significantly less capital than their US counterparts, one can't help but wonder if these reforms are simply rearranging deck chairs. As Hoggett highlights the largest pipeline since 2005, it's crucial to consider whether London is merely catching up with existing trends or genuinely regenerating its listings scene.
- IOImani O. · indie musician
The numbers are starting to tell a more nuanced story about London's stock market, but we should be cautious not to gloss over the elephant in the room: Brexit's lingering impact on confidence. While Julia Hoggett touts the exchange's reforms as a turning point, it's unclear whether this is a genuine recovery or a temporary uptick driven by government incentives and consolidation efforts. Until London can consistently attract top-tier IPOs without crutches, its prospects for long-term growth remain uncertain.