London Stock Exchange Suffers Biggest Exodus in 15 years

A man walks through the lobby of the London Stock Exchange in London, Britain, May 14, 2024. (Reuters)
A man walks through the lobby of the London Stock Exchange in London, Britain, May 14, 2024. (Reuters)
TT

London Stock Exchange Suffers Biggest Exodus in 15 years

A man walks through the lobby of the London Stock Exchange in London, Britain, May 14, 2024. (Reuters)
A man walks through the lobby of the London Stock Exchange in London, Britain, May 14, 2024. (Reuters)

The former head of the London Stock Exchange Group has warned its flagship bourse has become “deeply uncompetitive” amid its biggest exodus since the financial crisis.

Xavier Rolet, who ran LSEG between 2009 and 2017, said lackluster trading in London created a “real threat” of more UK firms ditching their listings in the capital for better returns overseas.

His comments come after FTSE 100 equipment rental firm Ashtead confirmed plans to move its main listing to the US, following in the footsteps of several other big companies in recent years.

LSEG data shows 88 companies have either delisted or transferred their primary listing away from London’s main market this year, while just 18 firms have joined.

The figures, first reported by the Financial Times, mark the most significant net outflow of firms from the market since the financial crisis in 2009.

The number of new listings is also on track to be the lowest in 15 years as companies mulling IPOs are put off by relatively cheap valuations compared to other financial centers.

More than 100 billion pounds ($126.24 billion) worth of listed companies have prepared to leave London’s stock market this year, either by agreeing to takeover deals at often hefty premiums or to delist.

Rolet added that falling volumes of trading in London in recent years compared to a sharp rise across the pond meant companies were forced to price their shares more cheaply in the UK to attract investors.

He told The Telegraph: “Simple maths suggests that an illiquid market will require too much of an issuance discount for even a run-of-the-mill IPO.”

“The same illiquidity will also affect post-IPO valuation too. In other words, the cost of equity capital would make such a market deeply uncompetitive.”

Shares in London now trade at an average discount of 52% compared to their US counterparts, according to Goldman Sachs.

The capital’s continued struggles are a blow to the UK government, which has scrambled to streamline the regulatory rulebook and reform the domestic pensions system to encourage more investment.

Rolet said the UK needed to scrap EU red tape deterring pension funds from owning stocks, as well as lowering taxes on share trading and dividends.

He argued: “My concern today is not so much for tech IPOs, that ship has sailed.

“The real threat has moved elsewhere in my opinion. If one takes the time to listen carefully to recent statements of prominent European blue-chip CEOs, [they] have raised the possibility of moving to the US to take advantage of lower costs of capital and energy, higher multiples and preferential tariffs.”



Saudi Tourism Forum 2025 Kicks Off in Riyadh with Over 100 Participants

The Saudi Tourism Forum 2025 kicked off on Tuesday in Riyadh. (Asharq Al-Awsat)
The Saudi Tourism Forum 2025 kicked off on Tuesday in Riyadh. (Asharq Al-Awsat)
TT

Saudi Tourism Forum 2025 Kicks Off in Riyadh with Over 100 Participants

The Saudi Tourism Forum 2025 kicked off on Tuesday in Riyadh. (Asharq Al-Awsat)
The Saudi Tourism Forum 2025 kicked off on Tuesday in Riyadh. (Asharq Al-Awsat)

Riyadh is hosting the third edition of the Saudi Tourism Forum 2025, featuring participation from over 100 organizations. The forum provides a comprehensive platform to showcase the latest advancements in the tourism sector, highlight investment opportunities, develop skills, and establish new partnerships to accelerate tourism growth in the Kingdom.

Taking place from January 7 to 9, the event is organized in collaboration with the Ministry of Tourism, the Saudi Tourism Authority, and the Tourism Development Fund.

Mohammed Basrawi, Chief Domestic Tourism Officer at the Saudi Tourism Authority, emphasized in his opening remarks the sector’s continuous growth and record-breaking achievements, driven by innovative products and services.

“In 2023, we celebrated welcoming 100 million visitors to the Kingdom, a milestone that reflects the ambitions of Vision 2030 and the support of our wise leadership,” he said.

Basrawi highlighted the success of the previous forum, which attracted over 28,000 visitors from 100 entities, facilitated the signing of 62 agreements, including nine with the Saudi Tourism Authority, and led to the launch of more than 20 new initiatives and products.

This year’s forum will feature additional partnerships, commercial opportunities, and international and local promotional campaigns to further establish Saudi Arabia as a leading global tourism destination, he added.

Khalid Al-Shareef, spokesperson for the Tourism Development Fund, shared insights with Asharq Al-Awsat on the forum’s sidelines, stating that the fund is overseeing more than 135 qualified projects across the Kingdom, with a total investment exceeding SAR 40 billion ($10.7 billion). These include the development of over 8,800 hotel rooms in cities such as Abha, Al-Baha, Taif, AlUla, and Madinah, extending tourism projects beyond major hubs like Riyadh, Jeddah, and the Eastern Province.

Al-Shareef identified the Asir region as a key area of focus due to its diverse geography, attracting both domestic and international tourists, particularly in the summer. He noted that the southern region hosts 15 projects worth SAR 2.6 billion and emphasized the importance of sustained support from both the Public Investment Fund and private sector companies.

Since its inception, the forum has achieved significant milestones, spotlighting Saudi Arabia’s rich cultural heritage and unique tourism offerings while advancing the shared vision of developing this vital sector.

The event features a diverse program of seminars and workshops on the latest tourism trends and developments, enabling participants to engage with industry leaders, policymakers, and experts while enhancing the skills of professionals in the sector.