Picture this: a 247-year-old British engineering firm that supplies parts to Boeing is gearing up for its stock market debut. The twist? It’s looking at Wall Street, not the City of London.
Leeds-based Doncasters Group is reportedly in talks with banks about a 2026 IPO in New York. If it happens, it’s yet another bruise for London’s struggling stock exchange—and a sign that even Britain’s oldest industrial names are losing faith in their home market.
Here’s why this matters, what’s driving the exodus, and what it means for London’s future as a financial hub.
Why Doncasters Is Choosing New York Over London
Founded in 1778 (yes, before the French Revolution), Doncasters isn’t your typical startup chasing Silicon Valley hype. This is old-school British manufacturing—precision metals and turbine blades for aerospace giants.
But here’s the kicker: less than 10% of its £585m revenue comes from the UK. About a third flows from the US. When your biggest customers and markets are American, listing in New York just makes sense.
The company, which employs around 3,000 people, posted pre-tax earnings of £81.6m in 2024. That’s solid performance, and it’s coming off a successful refinancing of $500m in debt facilities. Translation? Doncasters is in growth mode, not survival mode.
According to Bloomberg, no final decision has been made yet. But the fact they’re even exploring it speaks volumes about London’s current appeal—or lack thereof.
London’s Listings Crisis: The Numbers Don’t Lie
Let’s talk cold, hard stats. In the first nine months of 2025, the London Stock Exchange raised just £184m. Compare that to 2021, when it pulled in £17bn. That’s a 99% collapse.
Meanwhile, US markets raised roughly £40bn over the same period. London isn’t just losing—it’s being lapped.
The UK now ranks behind Sweden, Spain, Switzerland, Turkey, Poland, and Germany for IPO activity. It’s barely ahead of Greece and the Netherlands. For a city that once crowned itself Europe’s premier listing destination, that’s embarrassing.
Who Else Is Ditching London?
Doncasters would join a growing list of high-profile defectors:
- Wise: The fintech darling ditched its London listing in June for a primary US listing.
- AstraZeneca: Upgraded its US shares to a direct listing, citing better access to capital.
- Dozens of other firms eyeing dual listings or outright moves to New York or Nasdaq.
The pattern is clear. British companies want deeper liquidity, higher valuations, and access to Wall Street’s massive investor base. London? It’s become the backup plan.
What’s Wrong With London?
It’s not just one thing—it’s death by a thousand cuts.
Shallow liquidity. London’s investor pool is smaller and less active than New York’s. Companies worry their shares won’t trade as heavily, which can depress valuations.
Regulatory headwinds. Brexit added complexity. Post-2021 reforms haven’t done enough to make London competitive again.
Valuation gap. US-listed companies often trade at higher multiples than their London counterparts. For founders and investors, that premium is hard to ignore.
Even Europe’s struggling. Sweden is the only EU country to raise more than £1bn in IPOs this year. The continent-wide drought suggests this isn’t just a London problem—but London’s taking it the hardest.
What Happens Next?
Doncasters hasn’t made a final call yet. But if it goes ahead with a New York IPO, expect more British firms to follow suit. The snowball effect is real.
For London, the stakes are existential. Losing IPOs means losing fees, jobs, and prestige. It also weakens the City’s role as Europe’s financial capital—a position it’s held for decades.
Policymakers are scrambling. There’s talk of reforming listing rules, cutting red tape, and sweetening tax incentives. But talk is cheap. Companies want results, and right now, New York’s delivering them.
Bottom line: Unless London can prove it’s still a world-class venue for going public, expect the exodus to continue. Doncasters might be 247 years old, but it’s not about to let nostalgia dictate its future.
FAQ: Doncasters and the London Listings Drought
Q1: Why is Doncasters considering a New York IPO instead of London?
A: Doncasters generates less than 10% of its revenue from the UK, while about a third comes from the US. Listing in New York gives it better access to American investors and deeper capital markets where its customer base is concentrated.
Q2: How bad is London’s IPO market right now?
A: Pretty grim. London raised just £184m in the first nine months of 2025, down from £17bn in 2021. Meanwhile, US markets raised around £40bn over the same period, making 2025 London’s worst year for listings in over three decades.
Q3: Which other British companies have moved away from London?
A: Fintech firm Wise switched to a primary US listing in June. Pharma giant AstraZeneca upgraded its US shares to a direct listing to access broader capital pools. Several other firms are eyeing similar moves.
Q4: What’s causing London’s listings crisis?
A: It’s a mix of shallow liquidity, lower valuations compared to the US, regulatory complexity post-Brexit, and a general lack of investor appetite. Companies simply get better terms and more attention in New York.
Q5: Can London recover from this exodus?
A: Possibly, but it’ll take serious reform. London needs to streamline regulations, attract more institutional investors, and offer compelling reasons for companies to stay. Right now, the momentum is all pointing west across the Atlantic.
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Effective Date: 15th July 2025
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