Thursday, February 29, 2024 7:19am
London Stock Exchange owner LSEG today said it expects a recovery from last year’s historic listing downturn and sees an “encouraging IPO pipeline” for the year ahead.
In preliminary full-year results published this morning, LSEG said it had been hit by an “uncertain environment” last year, with pre-tax profits contracting by 3.2% to £1.2bn for the year to the end of 2023. Sales rose by 8.2% to £8.4 billion.
The group has pivoted significantly into its data business in recent years, but it currently derives only about 4% of its revenue from its main stock exchange, which is in financial trouble after suffering an IPO drought last year.
However, in a statement today, group principal David Schwimmer said there is a renewed interest in the exchange for the year ahead.
“We see an encouraging IPO pipeline for the London Stock Exchange,” Schwimmer said in a statement.
The London Stock Exchange has already hosted a number of floats this year, including Kazakhstan’s flag carrier Air Astana, which debuted earlier this month.
“We look forward to further progress in 2024,” Schwimmer added. “Our model is global, multi-asset class, operates across the entire trading lifecycle, and is proven to be successful regardless of market conditions, ensuring we provide our clients with the best possible service. , we will continue to invest to deliver returns for our shareholders.”
The company also said it “achieved all goals” it set for its blockbuster $27 billion acquisition of Refinitiv in 2021.
The full-year figures come after a tumultuous year for the London Stock Exchange’s owners, who were accused of pivoting too quickly from their flagship exchange.
Just 23 companies will be listed on the London Stock Exchange’s two markets in 2023, compared with 45 companies registered in an already quiet 2022, EY has revealed in its latest IPO Eye report. It decreased by 49%.
London has also been hit by a series of blows from companies changing their listings to other exchanges or seeking dual listings across the Atlantic. Gambling company Flutter recently moved its main listing to the US, and travel company Tui ended its dual listing in London and moved to Frankfurt.