Why London? Scalable exit pathways for Asia’s growth investors

Growth companies and their private equity or venture capital backers are increasingly casting their eyes beyond their home markets when planning an initial public offering (IPO). Momentum for cross-border listings is only accelerating. EY’s Global IPO Trends: H1 2025 report shows they hit a record high in early 2025, making up 14% of global IPOs – more than double the 6% share a decade ago.

So where should IPO-hopefuls head? Macro shifts and geopolitical fragmentation – like a softer dollar and the relentless Beijing-Washington trade war – are pushing companies to “de-risk” by avoiding politically fraught jurisdictions like the US.

London offers a powerful value proposition for PE and VC-backed firms: competitive valuations, robust follow-on issuance support, and liquidity to match its transatlantic and Asian peers.

Asia Pacific companies are well-received in London

The London Stock Exchange is the most international stock exchange globally. As much as 36% of its issuers are international, with 154 companies originating from the Asia Pacific region, collectively representing $2 trillion in market capitalisation. These span a diverse spectrum including:

• Listed investment funds investing over $3 billion into Vietnamese equities such as VEIL, VOF and VNH
• Winking Studios – a gaming studio backed by Acer
• Global infrastructure giants like CK Infrastructure
• and university spinouts like Seeing Machines commercialising cutting-edge research.

A gateway to global investors

London’s investor base is as international as it comes, with 63% of institutional investors in the FTSE All-Share index located outside of the UK. This global reach ensures that mid-cap issuers gain visibility and build their shareholder register not only in the UK, but across major financial centres worldwide. In addition, $487 billion of funds in the UK are mandated to invest in London-listed securities.

Valuations and liquidity that compete globally

While US market Price-to-Earnings ratios may appear higher due to the overweight of fast-growing sectors, studies show that like-for-like companies trade at comparable valuations across London’s capital markets. This highlights London’s position as a globally competitive financial hub, offering equally attractive investment opportunities.

Equally, there is a perception that the US markets are more liquid. Overall, the US market trades more, but adjusting for size, the UK market proves to be just as competitive. In fact, liquidity in the UK, when measured by the free-float adjusted turnover ratio, is comparable to the US, with indices like the FTSE 100 and FTSE All-Share showing robust trading activity. This means, contrary to popular belief, issuers in London can benefit from active investor engagement and fair price discovery without having to cross the Atlantic.

A market of global scale

London isn’t just Europe’s financial capital, it remains a global powerhouse. From the start of 2024 to 2025 YTD, the UK ranks fifth globally in equity capital raised, with $44.9 billion raised across 579 transactions. The London Stock Exchange is the largest venue in Europe, consistently outperforming its continental peers in both capital raised and market capitalisation. London-listed companies collectively hold a market value that is $2.7 trillion larger than the next biggest European exchange.

Follow-on issuances: fuel for growth

For companies listed in London, the journey doesn’t end at IPO – it begins there. London excels in post-IPO capital raising, with 52% of listed companies returning to the market for additional funding over the past five years. This is more than double the rate seen on Nasdaq and triple that of NYSE. In 2025 alone, 98% of capital raised came from companies already listed, demonstrating the market’s commitment to nurturing long-term growth.

Regulatory reform is already a reality

While many global markets are still debating reform, London has already acted. Beginning with the Lord Hill UK Listing Review, launched in November 2020, the London Stock Exchange has undergone the most significant overhaul of its Main Market listing rules in over 30 years (watch video below).

These changes have streamlined how a company joins the market, reduced complexity, and shifted regulation to a more disclosure-based regime, making London one of the most accessible capital markets globally. Further changes to the supply side and easing access for foreign companies into the FTSE index make the market even more appealing to international issuers.

Building on this momentum, the Financial Conduct Authority (FCA) has recently finalised sweeping reforms to the UK prospectus regime, set to take effect in January 2026. These include a higher threshold for secondary issuances – raising it from 20% to 75% of existing share capital – alongside new rules that simplify the process, and reduce costs, for UK-listed companies raising new equity capital. The changes are also designed to encourage retail participation in UK’s equity markets.

A market built for momentum

The London Stock Exchange offers private equity and venture capital firms a rare blend of scale, support, and sophistication. From competitive valuations and deep liquidity to a thriving ecosystem for follow-on capital, London offers much more than just a listing venue. It offers a scalable exit pathway for Asia’s growth investors.

If you have any questions or would like to arrange a meeting, please reach out to Thomas.Abbott@lseg.com, Head of South East Asia, Primary Markets, London Stock Exchange

The London Stock Exchange will host an exclusive lunch discussion, “Why London? Scalable Exit Pathways for Asia’s Growth Investors,” during the DealStreetAsia PE-VC Summit in Singapore on 11 September 2025.

Register your interest via this link. For any registration-related difficulties, kindly contact debri@dealstreetasia.com for support