- London accounted for 28 per cent of international IPOs by number in 2008
- The 681 foreign companies listed on the London Stock Exchange at the end of 2008 was more than on any other exchange
- Secondary issuance in London rose threefold to a record £63.7bn in 2008, with a further £36.9bn raised in the first four months of 2009
London has maintained its role as one of the leading centres for international equity trading despite unprecedented market volatility in 2008 according to International Financial Services London (IFSL), the independent organisation promoting UK financial services worldwide. IFSL’s report Equity Markets 2009 notes that the 25 international IPOs in London accounted for 28 per cent of the global total in 2008. The number of foreign companies listed on the London Stock Exchange at the end of 2008 (681) was ahead of the NYSE (415) and Nasdaq (336). London accounted for 21 per cent of global foreign equity trading in 2008; a share which would be higher if it were to include foreign equity trading executed on, or reported to, other trading venues in London.
The market value of UK Main Market companies on the London Stock Exchange mirrored declines on the global markets in 2008 and fell by a third to £1,288bn. Money raised from IPOs fell to £7.2bn, one third the level in 2007. Money raised on the London Stock Exchange through further issues however, reached record levels of £63.7bn in 2008, up from £19.1 in 2007, as companies shifted to raising capital from equity rather then bank borrowing. Strong secondary issuance has continued into 2009 with a further £36.9bn in money raised in the first four months of the year.
Trading on the London Stock Exchange totalled £3.5 trillion in 2008. Orderbook trading of £2.1 trillion was down 4 per cent on the previous year, due largely to the fall in the price of shares. In addition to the London Stock Exchange and AIM, trading in UK equities is facilitated by PLUS Markets - a recognised exchange and one of a number of Multilateral Trading Facilities (MTFs) - which have gained market share of secondary trading since the introduction of MiFID in 2007. Overall trading in UK equities, including trading on PLUS Markets and MTFs totalled around £5.4 trillion in 2008.
Marko Maslakovic, Senior Economist at IFSL, said: “Securities dealing is an important segment of the UK economy generating 0.66 per cent of GDP and net exports of £4.8bn. Its importance is also illustrated by the 81,500 it employs in London, 4 per cent down on the previous year’s record total.”
Sir Stephen Wright, Chief Executive at IFSL, said: “These record figures demonstrate London’s continued pre-eminence as an international centre for capital raising notwithstanding the global slowdown. The combination of the highest level of professional expertise and the diversity and the range of established markets continues to make London a very compelling choice”.
The market value of UK Main Market companies on the London Stock Exchange mirrored declines on the global markets in 2008 and fell by a third to £1,288bn. Money raised from IPOs fell to £7.2bn, one third the level in 2007. Money raised on the London Stock Exchange through further issues however, reached record levels of £63.7bn in 2008, up from £19.1 in 2007, as companies shifted to raising capital from equity rather then bank borrowing. Strong secondary issuance has continued into 2009 with a further £36.9bn in money raised in the first four months of the year.
Trading on the London Stock Exchange totalled £3.5 trillion in 2008. Orderbook trading of £2.1 trillion was down 4 per cent on the previous year, due largely to the fall in the price of shares. In addition to the London Stock Exchange and AIM, trading in UK equities is facilitated by PLUS Markets - a recognised exchange and one of a number of Multilateral Trading Facilities (MTFs) - which have gained market share of secondary trading since the introduction of MiFID in 2007. Overall trading in UK equities, including trading on PLUS Markets and MTFs totalled around £5.4 trillion in 2008.
Marko Maslakovic, Senior Economist at IFSL, said: “Securities dealing is an important segment of the UK economy generating 0.66 per cent of GDP and net exports of £4.8bn. Its importance is also illustrated by the 81,500 it employs in London, 4 per cent down on the previous year’s record total.”
Sir Stephen Wright, Chief Executive at IFSL, said: “These record figures demonstrate London’s continued pre-eminence as an international centre for capital raising notwithstanding the global slowdown. The combination of the highest level of professional expertise and the diversity and the range of established markets continues to make London a very compelling choice”.
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