London has surpassed Paris to become Europe’s largest stock exchange, buoyed by the successful initial public offering (IPO) of budget computer maker Raspberry Pi. Bloomberg’s index now ranks London as the sixth-largest exchange globally, with a combined market value of £2.51 trillion.
This resurgence ends a two-year period where London’s stock markets lagged behind Paris. Political uncertainty in France, particularly due to President Emmanuel Macron’s unexpected election call, has seen the value of French listed companies fall to £2.47 trillion.
The UK has faced calls to bolster its financial markets following subdued activity since 2021, its record year. IPOs in London have slowed, especially in the tech sector, which has seen a decline in listings. Prominent British tech firms have been looking abroad for IPOs, often to the US, seeking higher valuations.
Notably, chip companies Arm and Imagination chose New York for their listings last year. This year, biotech firm e-Therapeutics expressed interest in moving due to limited UK institutional interest.
The triumph over Paris is a significant boost for London’s markets, with Raspberry Pi’s shares showing steady growth since its listing. Recent surveys indicate a shift in sentiment among UK tech companies, with 72% showing a preference for listing in London over foreign markets.
In response to these trends, the UK government is planning reforms to make London’s public markets more attractive for listings. The Labour Party has also pledged to encourage pension funds to invest more in UK companies.