London's IPO market is facing challenges in competing with the US

The UK stock market is witnessing a trend of companies seeking primary listings in the United States, with drugmaker Indivior Plc being the latest to announce its intention to list on the New York Stock Exchange (NYSE), departing from the London Stock Exchange (LSE). For some firms, such a move holds commercial appeal. Ferguson Plc, a building materials supplier headquartered in Virginia, shifted its primary listing to the NYSE in May 2022, given its substantial operations and market presence in the US. Similarly, CRH plc, another building materials supplier based in Ireland, relocated its primary listing from the LSE to the NYSE in June the previous year, citing the significant portion of its earnings derived from North America, particularly the US.

The departure of Arm Holdings, a chip designer owned by Softbank, from the LSE to the Nasdaq exchange last year dealt a significant blow to the UK stock market. Karen Snow, Nasdaq's global head of listings, played a pivotal role in attracting Arm to the US for its re-listing, highlighting the ongoing efforts to engage with UK companies considering US listings. Notable among the companies pursuing primary listings in the US is Flutter Entertainment Plc, a gambling and gaming group. The appeal of US listings is underscored by the abundance of capital available in US markets, deeper investor pockets, higher liquidity, and greater trading volumes compared to the UK market.