London Stock Exchange Faces Exodus as Firms Prepare to Quit Amid High Costs and Lack of Investor Interest

Strategic Insights -

A fresh wave of fears has emerged regarding the London Stock Exchange's decline as two firms, Anexo Group and International Personal Finance, prepare to delist from the Alternative Investment Market (AIM). Anexo Group cited high listing costs and lack of investor interest as reasons for its decision, while IPF is in discussions for a potential takeover by New York private equity firm BasePoint Capital. Meanwhile, the City market continues to lose firms, with 88 delistings or transfers in 2024, including prominent companies like Flutter and Dark Trace.

Key Takeaways:

  • Anexo Group plans to delist from AIM, citing high listing costs (£500,000 initial fee and £100,000 annually) and lack of investor interest.
  • Alabama Bidco Limited, the majority shareholder of Anexo, is set to vote in favor of the delisting, making the outcome almost certain.
  • International Personal Finance is in discussions with BasePoint Capital for a potential takeover, which would take it off the London Stock market.
  • The deadline for BasePoint to either announce a firm intention to make an offer or state it will not make an offer is September 24.
  • The "Save Our Stock market" initiative, launched by FTSE 250 firm IG, demands policy changes to reverse the market's decline, including scrapping stamp duty on shares.
  • The City market has lost several prominent firms this year, including Wise, which delisted in favor of a US listing.
  • Foreign takeovers have swept the market, with a trio of tech takeovers representing a combined £6.3bn in M&A transactions.

Statistics:

  • The listing on London's junior stock market costs at least £500,000, followed by £100,000 annually to maintain (British Business Bank).
  • 88 firms either delisted or transferred their primary listing in 2024, the biggest exodus since the financial crisis.
  • The City market has lost its biggest fintech, money transfer firm Wise, which delisted in favor of a US listing.
  • Foreign takeovers have swept the market, with a combined £6.3bn in M&A transactions within 24 hours earlier this month.

Sources:

  • https://www.cityam.com/london-stock-exchange-gets-go-ahead-to-run-pisces-private-stock-market/
  • https://www.british-business-bank.co.uk/business-guidance/guidance-articles/finance/what-is-the-aim
  • https://www.cityam.com/fix-london-markets-crisis-before-its-too-late/
  • https://www.gov.uk/guidance/pay-stamp-duty
  • https://www.cityam.com/bargain-britain-uk-firms-under-siege-by-foreign-takeovers/
  • https://www.cityam.com/the-uks-ipo-market-is-in-dire-need-of-pizzazz/