So many of the headlines about the London market over the last couple of years have focused on pitting the US markets, particularly NASDAQ, against the London markets. The commentary nearly always follows the same narrative: Big-techco is planning to float – will it choose New York or London? Of course it chooses New York! Disappointment as London misses out again. London needs to up its game. Same old story.
But beneath the sound of heavy hooves from the big beasts in the technology herd as they migrate to another continent, can be heard the quieter patter of smaller corporate creatures travelling in the opposite direction. Whisper it quietly, but there are lots of ‘small’ US companies that are eyeing-up the London market.
There are many reasons for this apparently counterintuitive trend, the most notable being President Donald Trump. Since he took office just over a year ago, he has been explicit about the kinds of companies and industry sectors he supports and expects to see flourish as part of the MAGA campaign such as, drilling for oil and coal-based steel production. Businesses that fall outside of his benevolent glare fare less well. The prospects for companies involved in countering climate change, the renewable energy industry or focusing on diversity, socially responsible or governance initiatives, are less good.
The President’s opinion of all things ESG is widely known and companies in these sectors are finding it difficult to get the support and backing they need to grow in the Land Of The Free. Anecdotally, a significant number of such companies are talking to advisers about London or Europe, as an option outside of the USA, for a potential future listing.
Companies in the battery manufacturing sector; or that research clean fuel production; or alternative green energies such as, hydrogen; or facilitate the transition to green energy use; produce or manufacture using low-carbon iron or steel; develop sustainable building materials and/or practices; facilitate organic agriculture; develop technology that monitors and manages energy use in buildings and across infrastructure; or support companies to manage their workforces in equitable and sustainable ways, all of these and many, many more could find a welcoming new home in London.
While these companies may be relatively small by US standards, they are not to be sniffed at. Many will be considerable, hundred-million dollar enterprises that could make a significant impact on the London market. Which brings us to another key driver for the counter-migration. Many of these companies may suffer in the shadow of the very large companies that dominate the US stock markets such as, the Magnificent 7 and multi-billion dollar companies such as Walmart, JP Morgan Chase, Exxon Mobil, Mastercard, Home Depot, and Coca-Cola etc., On the London market, smaller US companies will be more visible and garner far greater attention from investors.
The signs for the London market generally this year look quite positive. There was an increase in London market activity with IPOs from Shawbrook, Beauty Tech and Princes Group at the end of 2025 and there is speculation about impending listings from Visma and Monzo as well as a number of payments firms and insurers, some of whom may have been considering alternate markets. London is coming back into the frame and that will have helped to open some new eyes to its potential.
An additional influx of new companies from the US would be a boon. For that to happen, it is vitally important that the UK maintains its reputation as a rational, stable market where businesses can prosper. London needs to showcase sensible business practices which include, having an appropriate tax regime and environment; being a favourable place for investment and as business friendly as possible. The Government should avoid chopping and changing rules and regulations unnecessarily, and create a predictable climate for doing business. Seen through that lens, the Government’s scrapping of the audit and corporate governance reform is no bad thing.
The UK Government’s recent overtures towards Europe with the aim of encouraging greater openness and integration is also to be welcomed and will no doubt be seen as an opportunity for any incoming companies looking to use the UK as a springboard into Europe. In addition, discussions around how to open-up and encourage far greater retail investment in the London market through stocks and shares ISAs and relaxing the rules around providing advice and information to potential investors, will also be seen positively by US companies that may be speculating about London.
The recent turbulence in UK politics which involved calls for the Prime Minister to resign resulted unhelpfully, in a corresponding upset to the UK economy: the value of the pound dropped. The episode highlights the importance of having a strong and stable financial centre. Just think of the potential advantage to be gained if London can leverage its safe and predictable status – as a counterpoint to the USA – to attract a greater number of companies in 2026.
This article was originally published in the February 2026 Corporate Advisers Rankings Guide. For more information, please contact Joseph Archer.
