In a bid to encourage more companies to list on London Stock Exchange (LSX), Boris Johnson and Lord Mayor of London David Wootton have hailed a new report to strengthen the capital’s IPO market.
LSX’s report, “Leadership in a changing global economy: The future of London’s IPO market” studies the London listing environment and outlines recommendations for strengthening London’s position as the pre-eminent home for UK and international IPOs.
The London Stock Exchange has the highest number of listed, international companies in the world with 593 international companies admitted to the markets as of the end of September 2011.
Speaking about London’s position as a financial powerhouse, Mayor of London, Boris Johnson, said, “London is rightly recognised as the most international financial centre in the world and the best place for leading companies to invest in and list their businesses.
“However, in times of global economic uncertainty and increasing competition from other markets, we have to shout louder than ever about what makes this city so unique. We should seize the opportunity to cement our reputation as the number one place to do business and I will do all I can to champion the cause,” he added.
The report suggests that following the financial crisis, London’s IPO market has made a strong recovery. In 2010, 95 IPOs listed on the Exchange, raising almost £10bn. In the first nine months of 2011, 67 IPOs have listed, more than any other major exchange, raising £12.8 bn.
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“A thriving IPO market is an essential component of a healthy economy. This study is a call to action for the City’s IPO community. Together, we need to ensure that the London listing market continues to flourish,” said Xavier Rolet, CEO of the London Stock Exchange Group
“As well as making strong recommendations to issuers and the wider financial community, we are also calling on the Government to enable regulators to consider the UK’s competitiveness in their regulatory framework. We are also reiterating our long-standing request for the abolition of stamp duty on shares.”
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The report called on the government to re-insert the requirement for financial services regulators to consider the UK’s competitiveness and abolishing stamp duty on share transactions.
The Lord Mayor of London, David Wootton said:
“In today’s economic climate, London’s ability to connect companies with investors becomes even more crucial. It is vital for us in the City to work together to deepen London’s connections as the world’s leading global financial centre – uniquely competitive, and uniquely equipped with the skills and expertise to meet the challenge from the established and emerging economies.”