Should the London Stock Exchange Focus on securing more secondary listings rather than big IPOs?

The recent announcement by British fintech giant Wise to shift its primary listing from the London Stock Exchange (LSE) to the US has reignited debate over London’s future as a global capital markets hub.

There’s no denying that US exchanges — particularly the NASDAQ and NYSE — offer greater liquidity, higher valuations, and a more tech-savvy investor base. Wise CEO Kristo Käärmann called the US the “biggest market opportunity in the world,” citing access to the “world’s deepest and most liquid capital market.”

Wise’s move follows a growing trend: Revolut’s expansion into Paris has raised doubts about a London IPO, while Cobalt Holdings and Shein have both shelved plans to list in the UK. These developments raise urgent questions about the LSE’s ability to attract and retain high-growth, tech-driven primary listings.

Despite ongoing reforms aimed at boosting liquidity and competitiveness, the short-term outlook suggests that many companies will continue to favour deeper capital markets abroad.

However, Wise’s decision to retain a secondary listing in London offers a potential silver lining — and a strategic opportunity. Should the LSE shift its focus toward securing more secondary listings as a way to maintain relevance and global standing?

In today’s challenging environment, secondary listings could be a pragmatic path forward. Encouraging companies with primary listings in the US or Asia to establish a secondary presence in London would help keep the City on the global financial map, even if it’s not the first-choice venue.

Secondary listings can boost trading volumes, attract institutional investors, and give UK-based investors easier access to international firms, without the friction of foreign exchange or regulatory hurdles.

A vibrant exchange that includes a mix of domestic and international firms also supports growth in adjacent sectors like legal, accounting, financial services — and, of course, PR.

By focusing on secondary listings, London can play to its strengths: a favourable time zone, robust regulatory framework, and a globally connected investor base. This strategy also aligns with broader UK government efforts to modernise listing rules and attract global capital.

Moreover, secondary listings can serve as a bridge to future primary or dual listings, especially if market conditions in London improve. They help maintain relationships with companies that may one day return to the UK as their primary base.  

Reversing the trend of companies choosing the US for their primary listings may be difficult in the near term. But doubling down on secondary listings could offer a viable, forward-looking strategy to keep London in the game.