London’s stock market is experiencing a significant decline in domestic listings, driven by a surge in foreign acquisitions and a shortage of new initial public offerings (IPOs), according to a recent report from Peel Hunt. The findings highlight growing concerns over the “rapid depopulation” of UK-listed companies amid increased overseas interest and more British firms choosing to list abroad.

Since early 2023, there have been 154 completed or proposed takeover bids for UK-listed companies valued at over £100 million, with a combined worth of approximately £165 billion. In contrast, only 11 UK IPOs of a similar scale have taken place during this period, totaling around £6 billion. Peel Hunt’s analysis shows that British companies are increasingly opting to go public on the New York Stock Exchange, with more listings expected in the US than London this year.

Charles Hall, head of research at Peel Hunt, noted a rise in foreign bids, which accounted for 62 percent of the takeover offers, amounting to £61 billion so far this year. In comparison, 2025 saw 40 bids valued at £35 billion. Additionally, seven companies have relocated their primary listings abroad, collectively worth about £120 billion. Eight UK-based firms, with a combined valuation of £330 billion, also chose to float on foreign markets.

The report, titled “Selling the Family Silver,” points to factors such as relatively low valuations of UK companies, domestic capital outflows, and the UK’s open regulatory environment allowing foreign investors easy access. Although recent regulatory reforms have aimed to enhance London’s appeal as a destination for listings, Peel Hunt cautions that current trends are likely to persist without further measures.

Among the suggested solutions are tax incentives to encourage pension funds and Individual Savings Accounts (ISAs) to invest in UK businesses, as well as capital gains tax relief for founders who list their companies on the London market.

The report’s release follows high-profile takeover activity involving major UK firms. Warehouse and data center operator Segro recently accused US-based Prologis of undervaluing the company in a £12.6 billion bid. Meanwhile, Easyjet has rejected several offers, including a £4.9 billion proposal from US firm Castlelake, while indicating openness to a better bid.

These developments underscore ongoing challenges facing London’s stock market as it competes for listings against international exchanges and grapples with rising foreign acquisitions.