London’s stock market is struggling, and it is not merely a blip. Investors are increasingly pulling their money out of the UK in search of better returns in the United States. As a result, new flotations — that is, companies raising funds to join the London Stock Exchange (LSE) — have all but collapsed.
The numbers are stark. While new listings raised £12 billion on the LSE in 2021, that fell to £338 million in 2022 — and so far this year the figure is a paltry £18.5 million. And that is just new business. Small investors have actively pulled £25 billion from the stock market over the past two years.
