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Europe’s fragmented capital markets and relatively discounted stocks continue to hinder its recovery from a prolonged IPO drought. While the continent has historically contributed 16% to global IPO issuance, it has only accounted for 8% so far in 2025. This disparity is further highlighted by the lack of large listings, with the biggest European deal of the year raising less than a billion dollars on the Stockholm bourse.
This challenging environment has led several European companies to seek listings in the United States, drawn by the promise of better liquidity and heftier valuations. Notable examples include:
* Arm Holdings Plc: The UK-based chip designer chose to float in New York two years ago with a more than $5 billion IPO, a significant loss for London.
* Klarna Group Plc: The Swedish “buy-now, pay-later” giant has also filed for a potential US listing, signaling another move away from European exchanges.
* Wise Plc: In a recent blow to the London Stock Exchange, the UK fintech announced its plans to move its primary listing to New York, while maintaining a secondary listing in London. Wise stated this move would “drive greater awareness of Wise in the US, the biggest market opportunity in the world for our products today, and enabling better access to the world’s deepest and most liquid capital market.”
These defections underscore the intense competition among global exchanges. London, in particular, has been hard hit by a wave of takeovers and high-profile companies opting for other markets.
Despite these challenges, European exchanges are actively working to attract new listings:
* London Stock Exchange (LSE): Charlie Walker, the deputy CEO of the London Stock Exchange, has stated that the exchange has “seen a noticeable increase in interest from international companies in coming to London.” The LSE is actively promoting reforms to simplify listing processes and make itself more competitive, aiming to attract fast-growing and founder-led companies. They are also partnering with platforms to connect investors with private companies, seeking to bridge the gap between private and public markets.
* SIX Group AG (Zurich Bourse): A spokesperson for the Zurich bourse operator, SIX Group AG, expressed optimism, noting “a good pipeline from several issuers across sectors and regions.” This indicates that while the overall European market is struggling, individual exchanges are still seeing interest and potential for future listings.
The push by European exchanges to “hustle for each opportunity” reflects the ongoing struggle to retain domestic companies and attract international ones in a highly competitive global market. The outcome will depend on their ability to offer compelling alternatives to the perceived advantages of US listings, alongside a more stable and attractive macroeconomic environment in Europe.

Video courtesy of CSOB

Video courtesy of CSOB