Issues over the demise of London’s inventory market are “massively overstated”, Jeremy Hunt has stated.
The Chancellor on Thursday sought to minimize fears that the Sq. Mile is in terminal decline, as a substitute claiming that seven tech giants shall be listed within the UK within the subsequent decade.
Mr Hunt informed the Wall Road Journal CEO Council Summit: “I feel London’s inventory market demise is massively overstated. We do have challenges, and we’re addressing these challenges.”
It comes amid mounting frustration concerning the rising variety of corporations quitting London in favour of listings abroad.
Paddy Energy proprietor Flutter final week confirmed plans to maneuver its main itemizing to the US, which comes after the departures of journey large Tui and constructing supplies provider CRH final yr.
Cybersecurity firm Darktrace additionally not too long ago introduced its exit from London’s inventory change after being purchased by US personal fairness agency Thoma Bravo in a £4.2bn deal.
The exodus of corporations has coincided with a dearth of latest listings, with Kazakhstan airline Air Astana among the many few to drift in London in 2024.
Nonetheless, Mr Hunt stated overhauling the UK’s itemizing regime will assist stave off competitors from New York, Monetary Information reported.
Mr Hunt stated: “Our prospectus guidelines will make [London] each bit as aggressive for tech founders as Nasdaq.”
The Chancellor additionally highlighted plans to assist Britain’s pension funds spend money on fast-growing corporations beneath his Mansion Home reforms unveiled final summer season.
This contains proposals to consolidate smaller pension schemes into superfunds targeted on riskier UK shares.
Mr Hunt stated: “London must be aggressive on two issues. To start with, we have to be sure to can entry that wall of cash right here, which is why we’re doing the large pension fund reforms.
“Secondly, what we have to do for tech specifically is to exhibit that truly, you may go all the way in which from a startup to a profitable IPO right here in London.”
The Chancellor additionally blamed giant US tech shares for widening the valuation hole between London and New York.
The rally on Wall Road shares has been primarily pushed by the so-called Magnificent Seven, together with Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.
Mr Hunt stated: “I predict that in a decade we’ll have seven UK tech shares of our personal, and that may pull up the London inventory market precisely the identical means that tech shares are doing within the US in the intervening time.
“Why? As a result of we’re Europe’s expertise hub and we now have that pipeline of nice corporations.”
