70 Companies Leave London's AIM Market in Past Year: Delisting Trend Casts Uncertainty over City of London's Financial Sector
The number of companies delisting from London's junior stock market, Aim, has increased by 70 in the past year, a drop of 9%.
This is a larger decrease than the previous year, raising concerns about the future of the City of London's financial sector.
Aim, which is run by the London Stock Exchange Group, allows smaller companies to raise funds without the stricter reporting requirements of the main market.
The number of companies listed on the London Stock Exchange (LSE) has decreased significantly in recent years, with over 300 companies delisting due to high compliance costs, difficulty raising funds, and takeovers.
Notable companies include Redx, C4X Discovery, Scirocco Energy, Hotel Chocolat, and Gresham House.
Large companies are also considering leaving the LSE due to these challenges.
Wael Sawan, Shell's CEO, stated that Shell is undervalued compared to US oil company peers, causing concern among investors.
Separately, Ocado, a grocery delivery company, is facing pressure from unidentified investors to move its listing from London to New York.
These developments come after a string of lost business for the London Stock Exchange (LSE).