Key facts
- The FTSE 100 and FTSE 250 indexes are near record highs.
- More than 30 companies have departed or plan to leave the London Stock Exchange in 2026.
- Notable departures include Schroders, Beazley, and Intertek, with recent takeover interest in Easyjet and Bodycote.
- The UK ranks third globally in company creation and scaling, according to LSE CEO Dame Julia Hoggett.
- The exchange has its largest IPO pipeline in 20 years, Hoggett stated.
- A new private market, the London Stock Exchange's Private Securities Market, has launched and shown early signs of activity.
Despite the London Stock Exchange's flagship indexes trading near all-time highs, the bourse faces a significant challenge with a growing number of companies departing. Over 30 firms have left or are preparing to leave the main market in 2026, with notable departures including Schroders, Beazley, and Intertek, and recent takeover interest in Easyjet and Bodycote. This trend has led to warnings that the LSE is "on life support."
However, LSE CEO Dame Julia Hoggett remains optimistic, asserting that the UK is a global leader in company creation and scaling, and possesses substantial institutional capital. She attributes the prevailing negative sentiment to self-inflicted "bad vibes" rather than fundamental market weakness. Hoggett highlighted that the exchange has its largest IPO pipeline in 20 years, despite a drought in new listings since 2021, with key candidates like Waterstones, Visma, and Sumup reportedly delaying their debuts until 2027.
In an effort to revitalize the market, the LSE has launched a new private market under the FCA's PISCES regime, which has seen early transactions from companies like Wayve and Moneybox. Hoggett also pointed to "perverse" incentives, such as stamp duty on shares, as a deterrent to investing in UK assets. She argues that the nature of UK capital has shifted from risk capital to defensive capital over the past 25 years, removing incentives for domestic investment.