The Chancellor of the Exchequer, Jeremy Hunt, is taking proactive steps to entice more companies to London’s stock market amidst a concerning trend of businesses being lured away by foreign and financial entities. Sky News has learned that a summit is being organized by the Treasury on May 16, with the aim of attracting entrepreneurs from the fintech and biotech sectors to consider listing their companies in London.
The event, to be held at Dorneywood, the chancellor’s weekend country residence, will also see the participation of City Minister Bim Afolami, Lord Petitgas, the Prime Minister’s chief business adviser, and key officials from the London Stock Exchange. The invitation extended to prominent private companies emphasizes the UK’s commitment to supporting innovative, high-growth businesses in achieving their growth ambitions through the capital markets.
Recent takeover bids for companies like Anglo American and Darktrace have raised concerns about the ‘de-equitisation’ of the UK stock market. The summit comes at a crucial time when London is facing challenges in retaining companies and attracting new listings. The government is keen on showcasing the benefits of London’s capital markets to fast-growing British companies, highlighting the importance of listing locally rather than overseas.
With the decline in IPOs and companies opting for listings in other international exchanges, the summit aims to address the concerns of businesses and reassure them of the advantages of listing in London. The Chancellor’s engagement with firms reflects the government’s commitment to supporting the growth of businesses and maintaining the competitiveness of the UK capital markets.