London's IPO Crisis Worsens--and AstraZeneca Could Join the Exodus

London's IPO drought just hit a new lowand it's getting harder to ignore. AstraZeneca AZN, the UK's largest listed company, is reportedly weighing a move to the US, frustrated by Britain's regulatory landscape and dwindling liquidity. That would mark the most symbolic defection yet, reinforcing a broader trend that's drained more than $100 billion in listings from the City in recent years. Most of AstraZeneca's trading already happens via its US ADRs, and a potential shift would only deepen the blow to London's shrinking capital markets.

It's not just listings walking out the doorcompanies are getting taken off the board entirely. Since January, 48 UK-listed firms have been targeted in M&A deals, from Deliveroo to Spectris. Meanwhile, IPO activity has nearly flatlined. The biggest listing this year? MHA's 98 million AIM debut. That's it. Glencore-backed Cobalt Holdings scrapped its plans. Shein is pivoting to Hong Kong. Even promising candidates like Italy's NewPrinces and Uzbekistan's Navoi Mining are still circling with no confirmed dates. As Peel Hunt puts it, the pipeline is evaporatingand with it, the UK's roster of growth names.

There are bright spots, but they're mostly stopgaps. Follow-on deals like Pfizer's PFE 5 billion stake sale in Haleon and upcoming secondary listings from names like Metlen Energy are keeping the lights on. And there's still hope Visma's massive 19 billion IPO could land in London next year, helped by incoming reforms to the FTSE's euro-denominated rules. But even that feels fragile. This won't be the strong reopening everyone is hoping for, said one dealmaker. London's problem isn't just weak momentumit's confidence. And right now, that's in short supply.