Rachel Reeves was urged yesterday to take the brave steps to revive the British stock market after a series of new lists offering hope that London ‘was not yet destined to be irrelevant’.
The Chancellor is considering introducing a stamp duty pause for a newly floating company – but some in the city says he must go further and delete taxes for stock trading altogether.
The exodus of the company listed in the UK to New York and the scarcity of new lists to replace it has encouraged concerns that London is at risk of losing its status as a global equity center.
This week’s number suggested that the city had fallen under Mexico and Singapore in the world ranking for the fundraising of this year’s first public offering.
And the Astrazeneca pharmaceutical giant decision to register its shares directly on Wall Street triggers fears that this can be a step towards a permanent step across the pool.
However, the city was given yesterday’s encouragement because the US Data Center group Fermi made its debut at the London Stock Exchange as part of a double list with Nasdaq New York.
Assistance: Chancellor is considering introducing a stamp duty pause for a newly floating company – but some in the city says he must go further and delete taxes for stock trading altogether
Meanwhile, the IPO in London for Bank Shawbrook Challenger is expected to be announced in the coming days. Shawbrook – who stopped the recording plan in the midst of the market turmoil earlier this year – refused to comment.
And today’s IPO for the beauty of technology is expected to respect gadget sellers used by people like Kim Kardashian and Serena Williams around £ 300 million.
Chris Beauchamp, Head of Market Analyst at the IG Trading Platform, said: ‘Fermi double list and the revival of the Shawbrook IPO showed that the London market was not destined to be irrelevant.
“This sends a message to Westminster that, with a little more love and attention, it can still compete with other large global financial centers.”
The Financial Times has reported that the Chancellor is considering improving the city by freeing investors from stamp duty on shares in newly registered companies.
This will expand the exceptions that have been in force at the point of problems for IPOs with two to three years.
Treasury says the government ‘makes England the best place in the world for business to start, scale, list and remain’.
The task of stamps on the purchase of British shares, which is charged at 0.5 percent, has long been blamed in the city for holding the stock market.
Many say it only adds to the temptation for British savers to pile up more money into the soaring US technology shares – because taxes do not apply to American shares.
And Coatsworth, the head of the market on the AJ Bell trading platform, said the stamp duty vacation plan ‘will erase the main barrier for some people and potentially attract a wider collection of investors’ and might encourage more companies to be included.
He said that after the relaxation of the stock market recording rules last year, it would be a ‘next natural step’.
Coatsworth added: ‘A bolder step is to delete stamp duty to British shares completely, but the Ministry of Finance may be reluctant to give up the flow of tax revenue to clog black holes in public finance.’
Brendan Callan, Head of the Executive of the Trapu Trading Platform, said: ‘Removing stock tax on a new list will be a strong step towards the right direction for the British equity market, but the government must go further and eliminate stamp duty on all stock trading.’
Data Center as Boss Cheers London Listing
The US Data Center Boss Group gave praise in London as a listing destination because its shares jumped on the first day of trading in the city.
Fermi, which was founded by former US Energy Secretary Rick Perry, saw that his share price rose 18 percent to $ 39 in his initial trading on his debut at London Exchange yesterday. But then closed, at $ 30.
London Calling: Data Center Group Fermi, led by the Chief Executive of Toby Neugebauer (Middle Left), seeing the share price rose 18% to $ 39 in early trading
This follows the first day of the company’s trade in the US Nasdaq exchange on Wednesday, which made shares soar 55 percent above the price of their list $ 21.
That is the first Dual UK-As stock market list in 30 years.
Fermi Executive Chief Toby Neugebauer told Mail that the list in London was a ‘improvement’ for the group because it seemed to be developing, adding: ‘This increases trust in your business among suppliers. The rules of British law are standard for the world. ‘
He said it was ‘always a plan’ to be included in London with New York, adding: ‘We did not lobby to register here but we could not be more welcomed.’
Boom in artificial intelligence has encouraged interest in companies that can provide the energy and data centers needed.
DIY Investment Platform
Aj Bell
Aj Bell
Investment portfolio and easy to use
Hargreaves Lansdown
Hargreaves Lansdown
Transaction ideas and free funds
Interactive Investor
Interactive Investor
Flat-fee investment from £ 4.99 per month
Investment
Investment
ETF Investment Account and Trading Free Cost
Trading 212
Trading 212
Free stock transactions and no account fees
Affiliate Link: If you take a product, this is money that can make a commission. This agreement was chosen by our editorial team, because we think they deserve to be highlighted. This does not affect our editorial independence.
Compare the best investment account for you
