Aspen Insurance has announced plans to list its shares on the New York Stock Exchange (NYSE), a move that could deal a further setback to the London Stock Exchange’s (LSE) aspirations to attract major listings.
The insurer, valued at approximately £3 billion, recently filed paperwork with the US Securities and Exchange Commission (SEC) in preparation for an initial public offering (IPO). Aspen has selected Goldman Sachs, Jefferies, and Citi to manage the listing, which could occur within the coming months.
This decision to list in New York follows a series of reforms introduced by the LSE in 2024 aimed at enhancing the UK market’s appeal to international businesses. These reforms included greater flexibility for companies in making decisions without shareholder approval and the removal of the premium listing segment, aimed at boosting liquidity. Despite these changes, the LSE has faced difficulties in reversing a long-term decline in relevance.
Aspen, based in Bermuda, was previously listed on the NYSE until it was taken private by Apollo in 2019 for $2.6 billion (£2.1 billion).
Read more: $2.6 billion deal done for Aspen Insurance
While the insurer has a significant workforce in the UK, with 524 of its 1,053 global employees based in Britain, it has expressed concerns over the differences in accounting standards between the UK and the US.
Additionally, a report from Goldman Sachs highlighted that non-bank financial firms listed on the NYSE are valued 45% higher than those on the LSE, which could be a motivating factor for Aspen’s decision.
The choice of listing venue by Aspen raises questions about the attractiveness of the UK market for companies in the specialty insurance sector. It also casts doubt on whether other potential IPO candidates, such as Canopius and Inigo, will choose to list in London or follow Aspen’s lead in seeking a US listing.
Recent data indicates that interest in listing on the LSE remains weak, with just 40 companies applying to list in 2024, a 30% decrease from the previous year. This continuing trend suggests that the IPO drought on the LSE could persist into 2025.
How do you think the recent changes to the London Stock Exchange will impact its ability to attract future IPOs? Share your views in the comments below.
