The Exodus: UK Firms Flee to the US Market
June 5, 2025, 9:44 pm
Location: United Kingdom, England, City of London
Employees: 1001-5000
Founded date: 1801
The London Stock Exchange (LSE) is losing its luster. Once a beacon for global finance, it now faces a steady stream of departures. The latest blow comes from Invidior, a drug maker, and Wise, a fintech firm. Both companies have decided to abandon their primary listings in London. They are heading to the United States, where the grass appears greener.
Invidior announced its move on June 2, 2025. The company cited liquidity issues and regulatory burdens as key reasons for its departure. Over 80% of its revenue comes from the US. It makes sense for them to align their listing with their primary market. The firm’s shares have plummeted over the past year, reflecting the pressures of inflation and competition in the opioid treatment sector. The decision to shift to Nasdaq is a strategic pivot. It allows Invidior to tap into a more robust trading environment.
Wise followed suit just days later. On June 5, 2025, the fintech announced plans to make the US its primary listing. This move aims to enhance liquidity and open doors to major US indices. Wise’s performance has been strong, with a 26% increase in cross-border volumes. However, the allure of the US market is too strong to resist. The company sees a vast opportunity in the American landscape.
The trend is clear. Companies are fleeing the LSE. In 2024, 88 firms left the exchange. Notable names like Darktrace and Flutter have already made the jump. The UK market is struggling to retain its stars. Analysts had hoped fintechs like Wise would rejuvenate the LSE. Instead, they are bolting for the US.
The reasons for this exodus are multifaceted. First, liquidity is a major concern. Nasdaq offers a deeper pool of investors. Companies can trade more freely, attracting more capital. Invidior highlighted that 75% of its trading volume came from Nasdaq. The LSE simply cannot compete with that.
Second, regulatory hurdles in the UK are daunting. Companies face a labyrinth of red tape. This complexity can stifle growth and innovation. In contrast, the US market is perceived as more business-friendly. Firms can navigate the landscape with greater ease.
Moreover, the US market is where the action is. It’s the largest economy in the world. For companies like Invidior and Wise, aligning with the US market is a no-brainer. They can capitalize on growth opportunities that are simply not available in the UK.
The implications of this trend are significant. The LSE is under pressure to attract new listings. It must find ways to keep existing firms from leaving. The loss of major players like Invidior and Wise sends a chilling message. The UK must adapt or risk becoming a financial backwater.
The government has taken notice. The Treasury has courted fintech firms, hoping to bolster the LSE. Yet, the recent departures suggest that these efforts may be too little, too late. The UK must create a more attractive environment for businesses. This includes reducing regulatory burdens and enhancing liquidity.
Investors are also feeling the impact. The LSE’s reputation is at stake. As companies flee, confidence in the market wanes. Investors may start to look elsewhere for opportunities. The UK must act swiftly to restore faith in its financial markets.
Invidior’s move is particularly telling. The company has faced challenges in recent years. It issued a profit warning last July, leading to a significant drop in share prices. The decision to shift to Nasdaq is a strategic lifeline. It allows Invidior to focus on its core business without the distractions of a struggling market.
Wise’s departure is equally revealing. The fintech sector has been a bright spot for the UK economy. Yet, even this sector is not immune to the allure of the US market. Wise’s plans to enhance its profile and align with growth opportunities highlight the shifting landscape. The company is not just looking for a new home; it’s seeking a launchpad for future growth.
The trend of UK firms moving to the US is likely to continue. As companies weigh their options, the US market will remain an attractive alternative. The LSE must respond to this challenge. It must innovate and adapt to retain its standing in the global financial arena.
In conclusion, the exodus of firms like Invidior and Wise from the London Stock Exchange is a wake-up call. The UK must address its regulatory challenges and enhance liquidity. Otherwise, it risks losing more of its financial crown jewels. The future of the LSE hangs in the balance. The time for action is now.
Invidior announced its move on June 2, 2025. The company cited liquidity issues and regulatory burdens as key reasons for its departure. Over 80% of its revenue comes from the US. It makes sense for them to align their listing with their primary market. The firm’s shares have plummeted over the past year, reflecting the pressures of inflation and competition in the opioid treatment sector. The decision to shift to Nasdaq is a strategic pivot. It allows Invidior to tap into a more robust trading environment.
Wise followed suit just days later. On June 5, 2025, the fintech announced plans to make the US its primary listing. This move aims to enhance liquidity and open doors to major US indices. Wise’s performance has been strong, with a 26% increase in cross-border volumes. However, the allure of the US market is too strong to resist. The company sees a vast opportunity in the American landscape.
The trend is clear. Companies are fleeing the LSE. In 2024, 88 firms left the exchange. Notable names like Darktrace and Flutter have already made the jump. The UK market is struggling to retain its stars. Analysts had hoped fintechs like Wise would rejuvenate the LSE. Instead, they are bolting for the US.
The reasons for this exodus are multifaceted. First, liquidity is a major concern. Nasdaq offers a deeper pool of investors. Companies can trade more freely, attracting more capital. Invidior highlighted that 75% of its trading volume came from Nasdaq. The LSE simply cannot compete with that.
Second, regulatory hurdles in the UK are daunting. Companies face a labyrinth of red tape. This complexity can stifle growth and innovation. In contrast, the US market is perceived as more business-friendly. Firms can navigate the landscape with greater ease.
Moreover, the US market is where the action is. It’s the largest economy in the world. For companies like Invidior and Wise, aligning with the US market is a no-brainer. They can capitalize on growth opportunities that are simply not available in the UK.
The implications of this trend are significant. The LSE is under pressure to attract new listings. It must find ways to keep existing firms from leaving. The loss of major players like Invidior and Wise sends a chilling message. The UK must adapt or risk becoming a financial backwater.
The government has taken notice. The Treasury has courted fintech firms, hoping to bolster the LSE. Yet, the recent departures suggest that these efforts may be too little, too late. The UK must create a more attractive environment for businesses. This includes reducing regulatory burdens and enhancing liquidity.
Investors are also feeling the impact. The LSE’s reputation is at stake. As companies flee, confidence in the market wanes. Investors may start to look elsewhere for opportunities. The UK must act swiftly to restore faith in its financial markets.
Invidior’s move is particularly telling. The company has faced challenges in recent years. It issued a profit warning last July, leading to a significant drop in share prices. The decision to shift to Nasdaq is a strategic lifeline. It allows Invidior to focus on its core business without the distractions of a struggling market.
Wise’s departure is equally revealing. The fintech sector has been a bright spot for the UK economy. Yet, even this sector is not immune to the allure of the US market. Wise’s plans to enhance its profile and align with growth opportunities highlight the shifting landscape. The company is not just looking for a new home; it’s seeking a launchpad for future growth.
The trend of UK firms moving to the US is likely to continue. As companies weigh their options, the US market will remain an attractive alternative. The LSE must respond to this challenge. It must innovate and adapt to retain its standing in the global financial arena.
In conclusion, the exodus of firms like Invidior and Wise from the London Stock Exchange is a wake-up call. The UK must address its regulatory challenges and enhance liquidity. Otherwise, it risks losing more of its financial crown jewels. The future of the LSE hangs in the balance. The time for action is now.