The UK stock market is shrinking. In the first half of 2025, Peel Hunt counted 31 bids and just one IPO for companies with a market capitalisation of £100mn or more. Last year brought 45 bids with a combined value of £52bn (of which £10bn is leaving in 2025) and three listings.
While we can bemoan domestic pension funds’ lacklustre support, private equity predation and boardroom acquiescence, the thinning ranks of public UK companies don’t mean investors lack options. Many have simply (and sensibly) turned to the wide array of international shares that are now available on trading platforms, as is clear from their lists of most popular stocks.
Despite this opportunity, hurdles remain. Withholding taxes and limited access to company information and data can be big deterrents to direct holdings, leading investors to either focus only on familiar US tech stocks that promise explosive capital gains or delegate the opportunity to international fund managers.