Cavendish joined the recent London Stock Exchange panel to explore why London remains a compelling launchpad for global growth.

Giles Balleny, Director of Corporate Finance at Cavendish, spoke alongside Michael Jacobs from Herbert Smith Freehills and Christopher Gibbons FCG from JTC Group.

A common misconception is that US markets always deliver more liquidity and higher valuations. In practice, once company size and growth trajectory are taken into account, the gap narrows considerably. The UK’s model of retained brokers, strong research provision, and diverse investor base means there is consistent appetite for companies of all sizes, especially those on a growth path.

The discussion covered why the UK market remains attractive for international IPOs, the balance between public and private funding, practical advice for companies entering the UK, and the ongoing reforms shaping the listing regime. The conclusion was clear: London continues to offer strategic advantages for ambitious international businesses, whether pursuing an IPO, a dual listing, or their next stage of growth.

Here are five points founders and boards should take from the discussion. 

  • Have a compelling reason to choose London
    • Fund managers will want to know why you aren’t going initially to your home market exchange.  It may be that your home market doesn’t have the maturity, the right investor base or comparator companies.
  • Demonstrate a commitment to the UK markets for the long term
    • An IPO is the beginning of a journey and not the destination and will be the beginning of a relationship with your investor base and the broader market. 
    • Putting in the effort with consistent news flow, market engagement and corporate broking activity will build the understanding of the business and trust with investors to grow the share price and provide access to further capital or sell down. 
    • Under promise and over deliver!
  • Don’t underestimate the soft benefits of an IPO
    • The liquidity of a traded share means that options have more than theoretical value and can be a great retention and incentivisation tool. 
    • Companies often find that being listed also conveys a certain status in their market that can be invaluable when dealing with multinationals and governments. 
    • The corporate governance structures that an IPO and being listed demands, provide huge benefits particularly in founder led business that have historically run quite leanly.
  • Engage early on with advisers
    • Often growth business don’t have the finance team and the procedures for the reporting requirements of a listed business and these need to be put in place well in advance of engaging with investors.
    • Seek advice from accountants and lawyers to understand if there are any additional IPO readiness requirements for international companies from your jurisdiction.
  • UK is a welcoming international market
    • Recent analysis by the LSE shows that London proportionately has more international companies than any other major exchange, its infrastructure that is highly developed, both on the investor side and advisers. 
    • It has a strong regulatory framework, that adapts to the times, seeking to be proportionate and flexible so the cost of listing is not excessive.
    • It does not have a culture of litigation against boards, and directors that you see in the US, that makes insurance cost prohibitive and deters good board candidates.

For any enquiries or discussions, feel free to reach out to
any member of the Cavendish team.