Source: Fortune
Summary
The London Stock Exchange (LSE) has seen a significant decline in listed companies, from 2,429 in 2015 to 1,534 in May 2026, according to Statista. Over 30 companies, including Schroders and easyJet, have left or plan to leave this year. U.K. markets face challenges due to a smaller investor base and lower valuations. LSE CEO Julia Hoggett claims reforms are reversing the decline, with increased M&A activity and a growing IPO pipeline. Despite this, London’s IPO numbers remain far below the U.S., with only seven IPOs in the first half of 2026 compared to 72 in the U.S.
Our Reading
The numbers tell one story.
LSE has shrunk by nearly a third in a decade.
CEO Julia Hoggett says reforms are working, but IPOs remain low.
U.S. IPOs still outpace London by a wide margin.
London’s role as a global gateway remains intact, but growth is slow.
Author: Evan Null
London’s Stock Market Decline
London’s stock market has seen a significant decline over the past decade, with the number of listed companies dropping from 2,429 in 2015 to 1,534 in May 2026, according to Statista. This decline has been marked by a wave of delistings and IPO snubs, with over 30 companies leaving or planning to leave the exchange this year. The U.K. market struggles with a smaller domestic investor base and lower valuations compared to the U.S.
Julia Hoggett, CEO of the London Stock Exchange, has been pushing for reforms to reverse the decline. Since 2021, she has introduced changes to listing rules, reduced regulatory burdens on the junior market AIM, and created a new secondary market called Pisces. These reforms have led to a rise in acquisitions and more companies using AIM’s revised rules.
Despite these efforts, London’s IPO numbers remain low. In the first half of 2026, there were only seven IPOs in London, compared to 72 in the U.S. Hoggett argues that the decline in IPOs is a global trend, not a uniquely British problem. However, the numbers still paint an unflattering picture, with London raising only $780 million in IPO proceeds, compared to $128 billion in the U.S.
Hoggett also points to the success of London as a global gateway for companies from Asia and the Middle East. The Uzbekistan National Investment Fund’s recent IPO on the LSE is an example of this. However, the overall trend of companies moving to the U.S. remains a challenge for the LSE.
Despite the challenges, Hoggett remains optimistic. She believes that the U.K. has a strong ecosystem for creating world-leading companies and that the LSE is well-positioned to compete globally. Her focus is on modernizing the exchange’s infrastructure and encouraging more domestic investment in the stock market.
Reforms and Reactions
Julia Hoggett has been at the forefront of efforts to revitalize the London Stock Exchange. Since taking the helm in 2021, she has implemented a series of reforms aimed at reversing the decline in listings and boosting capital market growth. These include changes to listing rules, reduced regulatory burdens on the junior market AIM, and the creation of a new secondary market called Pisces.
Hoggett claims these reforms are already showing results, with a rise in acquisitions and more companies using AIM’s revised rules. However, the overall number of IPOs in London remains low. In the first half of 2026, only seven companies listed on the LSE, compared to 72 in the U.S. This has led to criticism that the LSE is struggling to compete with its global counterparts.
Despite the challenges, Hoggett remains confident in the LSE’s potential. She argues that the decline in IPOs is a global trend, not a uniquely British problem. However, the numbers still show a stark contrast between London and the U.S., with London raising only $780 million in IPO proceeds compared to $128 billion in the U.S.
Hoggett also highlights the role of the LSE as a global gateway for companies from Asia and the Middle East. The Uzbekistan National Investment Fund’s recent IPO on the LSE is an example of this. However, the overall trend of companies moving to the U.S. remains a challenge for the LSE.
Despite the challenges, Hoggett remains optimistic. She believes that the U.K. has a strong ecosystem for creating world-leading companies and that the LSE is well-positioned to compete globally. Her focus is on modernizing the exchange’s infrastructure and encouraging more domestic investment in the stock market.
The Global Context
London’s stock market has long been a global hub for capital, but recent trends show a decline in its prominence. The number of listed companies has dropped significantly, and many companies have moved their listings to the U.S. This shift has been driven by factors such as lower valuations, a smaller domestic investor base, and a more favorable regulatory environment in the U.S.
Julia Hoggett, CEO of the London Stock Exchange, argues that the decline is not unique to the U.K. but part of a broader global trend. She points to the fact that the U.S. has seen a similar drop in IPOs, from an average of over 300 per year between 1980 and 2000 to 90 in 2025. However, the contrast between the U.S. and the U.K. remains stark, with London raising only $780 million in IPO proceeds in the first half of 2026 compared to $128 billion in the U.S.
Hoggett also highlights the role of the LSE as a global gateway for companies from Asia and the Middle East. The Uzbekistan National Investment Fund’s recent IPO on the LSE is an example of this. However, the overall trend of companies moving to the U.S. remains a challenge for the LSE.
Despite the challenges, Hoggett remains confident in the LSE’s potential. She believes that the U.K. has a strong ecosystem for creating world-leading companies and that the LSE is well-positioned to compete globally. Her focus is on modernizing the exchange’s infrastructure and encouraging more domestic investment in the stock market.
However, the numbers still tell a different story. London’s IPO numbers remain far below those of the U.S., and the LSE continues to face competition from other global markets. The challenge for Hoggett and the LSE is to convince companies and investors that London remains a viable and attractive option for raising capital.
Challenges and Opportunities
The London Stock Exchange faces significant challenges in maintaining its position as a global financial hub. The decline in listed companies, the shift of many firms to the U.S., and the overall trend of reduced IPO activity have all contributed to a sense of stagnation. However, there are also opportunities for growth and revitalization.
Julia Hoggett has been leading the charge to modernize the LSE and make it more competitive. Her reforms include changes to listing rules, reduced regulatory burdens on the junior market AIM, and the creation of a new secondary market called Pisces. These changes aim to attract more companies to list on the LSE and to encourage more investment in the U.K. market.
Despite these efforts, the LSE still faces stiff competition from other global exchanges. The U.S. remains the dominant player, with a much higher number of IPOs and significantly more capital raised. In the first half of 2026, the U.S. completed 72 IPOs, raising $128 billion, compared to only seven in London, which raised $780 million. This disparity highlights the challenges that the LSE must overcome to regain its former prominence.
Hoggett also emphasizes the importance of the LSE as a global gateway for companies from Asia and the Middle East. The Uzbekistan National Investment Fund’s recent IPO on the LSE is an example of this. However, the overall trend of companies moving to the U.S. remains a challenge for the LSE.
Despite the challenges, Hoggett remains optimistic about the future of the LSE. She believes that the U.K. has a strong ecosystem for creating world-leading companies and that the LSE is well-positioned to compete globally. Her focus is on modernizing the exchange’s infrastructure and encouraging more domestic investment in the stock market.
The Road Ahead
The road ahead for the London Stock Exchange is filled with both challenges and opportunities. The decline in listed companies, the shift of many firms to the U.S., and the overall trend of reduced IPO activity have all contributed to a sense of stagnation. However, there are also signs of potential growth and revitalization.
Julia Hoggett has been leading the charge to modernize the LSE and make it more competitive. Her reforms include changes to listing rules, reduced regulatory burdens on the junior market AIM, and the creation of a new secondary market called Pisces. These changes aim to attract more companies to list on the LSE and to encourage more investment in the U.K. market.
Despite these efforts, the LSE still faces stiff competition from other global exchanges. The U.S. remains the dominant player, with a much higher number of IPOs and significantly more capital raised. In the first half of 2026, the U.S. completed 72 IPOs, raising $128 billion, compared to only seven in London, which raised $780 million. This disparity highlights the challenges that the LSE must overcome to regain its former prominence.
Hoggett also emphasizes the importance of the LSE as a global gateway for companies from Asia and the Middle East. The Uzbekistan National Investment Fund’s recent IPO on the LSE is an example of this. However, the overall trend of companies moving to the U.S. remains a challenge for the LSE.
Despite the challenges, Hoggett remains optimistic about the future of the LSE. She believes that the U.K. has a strong ecosystem for creating world-leading companies and that the LSE is well-positioned to compete globally. Her focus is on modernizing the exchange’s infrastructure and encouraging more domestic investment in the stock market.
