The London markets, still celebrating the successful IPO of budget computer maker Raspberry Pi, have overtaken Paris as Europe’s biggest stock exchange.
London has returned to the top European spot in Bloomberg’s index of exchanges with a combined value of £2.51tn, making it the sixth largest in the world.
London’s stock markets have spent the past two years below Paris. However, turbulence stemming from the surprise election called by President Emmanuel Macron has caused the combined value of France’s listed firms to drop to £2.47tn.
There has been growing pressure on the UK to shore up its markets, which have seen muted activity since its record year in 2021.
Data has shown the cash raised from IPOs in London has slowed down significantly, with tech listings in particular becoming increasingly rare.
There has also been a trend of prominent British tech firms opting to IPO in foreign markets, often citing the opportunity to achieve higher valuations in the US.
Last year, chip firms Arm and Imagination picked New York over London. This year, London-listed biotech e-Therapeutics announced its interest in switching over due to a “lack of institutional UK interest”.
Overtaking Paris will be seen as a welcome boost for London, especially off the back of Raspberry Pi’s public listing. Shares in the firm have steadily increased in value since its debut last week.
There has also been some recent data suggesting UK tech companies are feeling increasingly favourable towards London, with a recent survey finding 72% of British tech firms more interested in listing in London than overseas.
The government has put in motion plans to reform London’s public markets to attract more listings. The Labour Party has similarly said it would ensure pension funds invest more in UK companies.
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