What's driving growth stocks away from a London listing?

And why is a Lancaster University spin out bucking the trend?

Hello Rainmakers,

2024 marked one of the quietest years on record for the London Stock Exchange (LSE) with 18 listings on the main market and AIM.

The chunkiest regional deal was Applied Nutrition making an October debut.

Yet a total of 88 companies left or moved primary listings from the city - the highest number since 2009 according to EY.

Some of the biggest names in UK business are packing their bags. Takeaway giant Just Eat, gambling powerhouse Flutter Entertainment (owner of Paddy Power), industrial rental firm Ashtead, and travel group TUI all announced plans to ditch their UK main listings altogether.

So, what’s driving them away?

But first, a reminder that the Rainmakers conference is just over a week away.

Tom Ryder from Applied Nutrition will be a speaking about their 2024 IPO- offering rare insights and experiences.

Rainmakers 2025 – Wednesday 26 March, 2025 – and secure your place today.

Panels, keynotes, strategies, breakout sessions and plenty of opportunities to network.

Market exodus

All businesses have their own individual reasons, but some trends have clearly emerged.

Just Eat pointed to the “administrative burden, complexity, and costs” of maintaining an LSE listing but kept its place on Amsterdam’s stock market - where it’s headquartered.

Flutter Entertainment, worth £42bn, jumped ship from both the LSE and the Dublin Stock Exchange in favour of New York, drawn to the “world’s deepest and most liquid capital markets.”

Ashtead, a £27bn industrial rental firm, followed suit in December, calling the US its “natural home” and making plans to shift its primary listing to New York. And they won’t be the last.

Most recently, the CEO of mining group Glencore said it was considering a move to New York.

Gary Nagle told reporters: “Ultimately, what we want to ensure is that our securities are traded on the right exchange where we can get the right and optimal valuation for our stock.

“There have been questions raised previously around whether London is the right exchange. If there’s a better one, and those include the likes of the New York stock exchange, we have to consider that.”