London’s IPO market has fallen to 20th place in global IPO rankings, according to Bloomberg, below the stock markets in Oman, Luxembourg and Malaysia.
By the end of November, according to Bloomberg's calculations, around £780 million ($1 billion) had been made from IPOs in the Square Mile, down 9% on this time last year.
According to LSEG stats, £1.03 billion had been raised by IPOs in London, roughly flat on the previous year.
London was not chosen by any of the 100 largest offerings globally this year, with the largest LSE float being Air Astana (LSE:AIRA), which raised just over £300 million, with Greece, Sweden and South Africa all hosting larger IPOs.
The decline was attributed by Bloomberg to low valuations achieved by companies in London, limited liquidity and a risk-averse investor base.
This downturn is also impacting the City’s corporate brokers and other support services that rely on IPO activity for a substantial portion of their revenues.
What's also hurting that City ecosystem is that exits are not being replaced, with Bloomberg counting around 45 companies fewer companies on the LSE than at the start of the year due to mergers and acquisitions - the most since 2010.
Many more have simply delisted amidst complaints about a lack of liquidity and in the belief that they will be able to raise more money as private companies.