{"id":194940,"date":"2025-04-22T13:21:37","date_gmt":"2025-04-22T12:21:37","guid":{"rendered":"https:\/\/realbusiness.co.uk\/?p=194940"},"modified":"2025-04-22T13:28:21","modified_gmt":"2025-04-22T12:28:21","slug":"13-signs-london-ipo-dying-whats-replacing","status":"publish","type":"post","link":"https:\/\/realbusiness.co.uk\/13-signs-london-ipo-dying-whats-replacing","title":{"rendered":"13 Signs The London IPO Is Dying & Here’s What Is Replacing It"},"content":{"rendered":"
<\/div>

For decades, the London Stock Exchange (LSE) was the gold standard for going public. A place of prestige. Visibility. Capital. But lately? It\u2019s looking more like a ghost town.<\/strong><\/p>\n

Listings are down. Valuations are stale. Ambitious firms are heading elsewhere. What\u2019s unfolding isn\u2019t just a dry spell, it\u2019s a quiet restructuring of how the world raises money.<\/span><\/p>\n

1. The Numbers Don\u2019t Lie<\/b><\/h3>\n

In 2017, London IPOs raised over \u00a316.8 billion. Fast-forward to 2021 and that figure was slashed by more than half. By 2023, the market had flatlined even more, despite global capital being flush. <\/span>The implication? London isn\u2019t the magnet it once was.<\/span><\/p>\n

2. Global Giants Are Opting Out<\/b><\/h3>\n

ARM, CRH, Flutter\u2026 when flagship British firms start picking New York over home turf, it\u2019s more than symbolic. They\u2019re not chasing headlines\u2014they\u2019re chasing higher valuations, deeper liquidity, and tech-savvy investors. And they\u2019re finding all three abroad.<\/span><\/p>\n

3. Secondary Markets Are Giving Founders Options<\/b><\/h3>\n

Platforms like Forge, EquityZen, and, most importantly, the <\/span>Zyon grand floor plan<\/span><\/a> now allow early investors and employees to cash out without waiting for a public debut. These private share markets did $120B in volume last year alone. If you can get liquidity without listing, why go public at all?<\/span><\/p>\n

4. New Capital Platforms Are Filling the Void<\/b><\/h3>\n

Traditional IPOs aren\u2019t the only way to access investor cash, and smart investment companies are capitalising on that gap. Many are creating mouthwatering alternative platforms to woo investors. Take the <\/span>Zyon Grand<\/span><\/a>, for instance; developers of this portfolio are leveraging tech, real estate and private equity to win investors over in an instant.<\/span><\/p>\n

Founders raise without the IPO drag. Investors get in earlier, with more flexibility. It\u2019s clean, fast, and increasingly popular, and London has nothing quite like it.<\/span><\/p>\n

5. The Private Route Is Winning<\/b><\/h3>\n

In today\u2019s market, firms can raise billions privately\u2014and skip the circus of an IPO. In 2023 alone, global private funding soared past $1.2 trillion. <\/span>SpaceX. Stripe. OpenAI.<\/b> All mega-valuable, all still private.<\/span><\/p>\n

6. SPACs & Shortcuts<\/b><\/h3>\n

Love them or hate them, SPACs offered companies a faster, simpler path to go public. While London dithered with red tape, the U.S. minted $160B in SPAC deals in a single year. The result? Founders are bypassing the LSE entirely.<\/span><\/p>\n

7. London\u2019s Built-In Discount<\/b><\/h3>\n

UK-listed companies routinely trade at lower multiples than their U.S. peers. The FTSE 100 averages a P\/E of ~13x. The S&P 500? Around 23x. When valuation is destiny, London isn\u2019t where dreams go to scale.<\/span><\/p>\n

8. Brexit\u2019s Aftershock<\/b><\/h3>\n

Post-Brexit, the EU pivoted. Amsterdam and Paris pulled the capital. Regulation in the UK thickened. <\/span>The LSE\u2019s share of European IPO volume halved\u2014from 40% in 2016 to just 20% in 2023. The city hasn\u2019t recovered.<\/span><\/p>\n

9. A Rise in Direct Listings & Digital Securities<\/b><\/h3>\n

Spotify did it. Slack did it. They went public, without banks. Meanwhile, blockchain-based securities are letting companies fractionalise equity, bypass intermediaries, and access global capital. <\/span>This isn\u2019t the future. It\u2019s already happening.<\/span><\/p>\n

10. Retail Investors Have Stepped Back<\/b><\/h3>\n

Retail participation in UK IPOs has dropped by 35% since 2018. <\/span>Burned by underwhelming returns, smaller investors have turned to easier, trendier plays\u2014like ETFs and crypto. Without their appetite, small-cap IPOs don\u2019t stand a chance.<\/span><\/p>\n

11. ESG Fatigue Is Real<\/b><\/h3>\n

London\u2019s stricter ESG standards were meant to signal virtue. But to some companies\u2014especially in mining, energy, and manufacturing\u2014they\u2019re just more hoops to jump through. Glencore faced massive pressure over its coal portfolio. Others are quietly steering clear.<\/span><\/p>\n

12. London\u2019s Missing Ingredient: Growth<\/b><\/h3>\n

The world wants growth. And tech stocks, in particular, deliver it. While the NASDAQ surged +43% in 2023, the FTSE 100 barely cracked +3%. The takeaway? London isn\u2019t where high-growth companies\u2014or their investors\u2014go to play.<\/span><\/p>\n

13. London Missed the Digital Asset Boom<\/b><\/h3>\n

Coinbase\u2019s 2021 IPO hit $100B. Meanwhile, London still hasn\u2019t approved major crypto listings or ETFs. While the U.S. is leaning into tokenised assets, London is falling further behind\u2014digitally and philosophically.<\/span><\/p>\n

What\u2019s Taking Its Place?<\/b><\/h2>\n

London\u2019s IPO isn’t dead yet, but it’s not leading either. What\u2019s rising instead?<\/span><\/p>\n

    \n
  • Private capital<\/b>: massive rounds, no public glare<\/span><\/li>\n
  • SPACs & direct listings<\/b>: fast lanes with fewer strings<\/span><\/li>\n
  • Digital securities<\/b>: tokenised, fractional, global<\/span><\/li>\n
  • Secondary share markets<\/b>: liquidity without listing<\/span><\/li>\n
  • Platforms like Zyon Grand<\/b>: structured capital without the IPO bottleneck<\/span><\/li>\n<\/ul>\n

     <\/p>\n

    So, What\u2019s In It for Us?<\/b><\/h2>\n

    Watching the London IPO unravel might feel like boardroom drama from afar. But for everyday investors, founders, and even side hustlers, this shakeup opens real doors.<\/span><\/p>\n

    Here\u2019s how to tap into the shift:<\/span><\/p>\n

    Early Access Is No Longer Just for the Elite<\/b><\/h3>\n

    The rise of <\/span>private capital platforms<\/b> means you don\u2019t need to wait for an IPO to get in. <\/span>Platforms like <\/span>Zyon Grand<\/b> are structuring pre-IPO access to assets that used to be locked up behind velvet ropes\u2014think tech, real estate, even revenue-share models. <\/span>It’s a rare chance to ride the wave <\/span>before<\/b> the buzz.<\/span><\/p>\n

    Secondary Markets = Liquidity Without the Wait<\/b><\/h3>\n

    Can\u2019t score a spot in a hot private deal? Secondary platforms let you buy into already-valued startups. You\u2019re not just holding shares\u2014you\u2019re participating in a quiet but booming market that\u2019s outpacing public ones.<\/span><\/p>\n

    Founders: Ditch the IPO, Keep the Equity<\/b><\/h3>\n

    If you’re building a startup, the pressure to \u201cgo public or go home\u201d is gone. You can raise smart, structured capital without giving away control\u2014or enduring the IPO soap opera. Better yet, you can offer equity to early believers without listing a single share.<\/span><\/p>\n

    Think Global, Not Just Local<\/b><\/h3>\n

    With London softening, global alternatives\u2014from tokenised real estate in Asia to U.S.-based SPACs\u2014are exploding. You don\u2019t need a Canary Wharf postcode to build generational wealth. You just need to move with the capital.<\/span><\/p>\n

    Final Thought<\/b><\/h2>\n

    Founders today want flexibility. Investors want growth. And capital wants to move faster than the London IPO can accommodate. Unless the LSE rewires itself for the modern capital era, it risks becoming a relic\u2014while the real innovation happens elsewhere.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    For decades, the London Stock Exchange (LSE) was the gold standard for going public. A place of prestige. Visibility. Capital. But lately? It\u2019s looking more like a ghost town. Listings are down. Valuations are stale. Ambitious firms are heading elsewhere. What\u2019s unfolding isn\u2019t just a dry spell, it\u2019s a quiet restructuring of how the world […]<\/p>\n","protected":false},"author":25923,"featured_media":194942,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[11878],"tags":[],"class_list":["post-194940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"views":145,"_links":{"self":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts\/194940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/users\/25923"}],"replies":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/comments?post=194940"}],"version-history":[{"count":0,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts\/194940\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/media\/194942"}],"wp:attachment":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/media?parent=194940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/categories?post=194940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/tags?post=194940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}