Numis: FTSE leaders bullish on revival of UK listings

investmentweek.co.uk:

Numis found that confidence about the London Stock Exchange’s competitiveness as a capital markets hub versus rival exchanges is improving.

According to a report by investment bank Numis, Raised in London — FTSE Leaders' views on Capital Markets, the vast majority (93%) of FTSE bosses believe the number of IPOs will now increase over the next 24 months. 

Despite the challenging environment for capital markets, there was consensus among respondents that more companies would choose the UK as their listing destination in the coming years. 

FTSE leaders also agreed (94%) that UK and European private companies would choose London or European markets as opposed to the US when it comes to listing, in part due to the mixed performance of UK and European companies which have listed in the US market.

Numis: No 'meaningful' pick-up in London IPO market in short term

Numis, which interviewed CEOs, CFOs, heads of investor relations, senior independent directors and chairs in May, also found that confidence about the London Stock Exchange's competitiveness as a capital markets hub versus rival exchanges is improving.

Around 90% of respondents expect either a dramatic (41%) or slight (49%) uptick in market competitiveness in the next three years. However, there is sentiment that more needs to be done to future-proof the UK's position as a leading financial centre. 

When it comes to what could be done to improve the market's appeal, 38% of FTSE leaders pointed to the need for a more competitive executive remuneration environment, while 32% argued for a less rigid corporate governance regime. 

According to the report, UK plc leaders have welcomed the FCA's efforts to reform the listings regime, with 92% noting that the latest set of