 when it floats in New York, dealing a further blow to London's stock market. The highly-anticipated float marks Arm's return to public markets. The Cambridge-based company was previously a member of the FTSE 100 until its takeover by the Japanese investment group Softbank for £24bn in 2016. It comes despite failed attempts by Rishi Sunak, the Prime Minister, to convince Softbank to consider a dual UK-US listing of the tech giant. Listings on the London Stock Exchange sank again during the first half of 2023 , despite the Government's attempts to revive the City's stock exchange. The number of new listings on the London Stock Exchange dropped by nearly a third between January and June compared to the same period last year, accord){kind=link}
Equity market trades lower than rest of the world, making it more expensive to raise capital in London
UK stocks are trading at the biggest discount on record, fuelling fears of a further exodus of British companies to Wall Street.
Britain’s equity market is trading far lower compared to the rest of the world, after a small reversal between 2021/22, according to data from UK investment bank Panmure Gordon.
One of the most visible impacts of this discount is that it is more expensive for companies to raise capital through London’s stock market, according to Simon French, chief economist and head of research at Panmure Gordon.
He tweeted: “Remarkable to think that prior to the Brexit vote UK equities traded at a valuation premium to the RoW [rest of the world].”