London has officially lost its status as the once and future hub for global finance, both in Europe and beyond, falling out of the top 20 Initial Public Offering (IPO) markets with the weakest market volume in more than 35 years. The Bolsa Mexicana de Valores (BMV), the Mexican stock exchange, surpassed the London Stock Exchange in the total value of its IPOs, and in the European neighborhood, Amsterdam and Stockholm are vying for the laurels once belonging to London.
After years of declining fortunes, the BMV has touted three major new listings, Banamex, Aeromexico, and Diablos Rojos del Mexico, the first listed Latin American baseball team. Citigroup recently reasserted its plan to pursue an IPO for Fibra Uno, its Mexican retail unit, rebuffing an offer.
Bloomberg published a ground-breaking article on September 30, showing that the UK exchange fell three places to 23rd in Bloomberg’s own ranking of the busiest global destinations for IPOs, even behind the bustling market of Oman.
Doom & Gloom in London
At its peak, London hosted over 300 deals with $51 billion in IPO volume in 2006. By 2014, that had decreased by half to $26 billion and 126 deals. In 2021, the deal volume reached $23 billion and 121 deals, but in 2022, it decreased to -$2 billion and 35 deals. For 2025, it has dwindled to just $248 million and 7 deals.
The third quarter of 2025 has been bleak. Deal volume decreased by 85% year on year, a precipitous decline.
Critics have blamed overregulation and the compliance costs faced by firms interested in listing on the London Stock Exchange (LSE). Still, a 2024 study on the “gloomy narrative” of the LSE concluded that “structural issues beyond regulation have hindered the LSE’s competitiveness.”
Analysts say that Brexit, high corporate taxes, and strict ESG disclosure rules have accelerated the exodus. The common complaint about London is that prospective firms garner lower valuations, much lower, than in the U.S. or some Asian markets.
When there’s a capital surplus in the Western economies, investors seek yield in emerging markets, especially if the climate in the West is dull or risky for one reason or another. It isn’t a London problem or a Mexican success story, it’s the sucking sound of the global capital system at work, realigning capital according to the pull of financial gravity, to the south and east.
Viva Mexico
The Bolsa Mexicana de Valores has debuted some notable companies recently, after a few years of notable departures, including Aeroméxico, Lala, Bachoco, Ienova, Banco Santander, Monex, Citigroup, Benavides, Grupo Sanborns, and Elektra.
The last, Elektra, suffered a collapse of confidence in July of 2024, after a decline of 70%, and a defection of 95% of its shareholders.
However, in July of 2025, Fibra Next, a Mexican real estate investment trust (REIT), raised $431 million with its IPO, much more than London’s whole year’s haul. For Mexico, this was a once-in-a-decade blockbuster stock offering and a reversal of the narrative of the July before.
Although the finish was strong, the history of this specific deal is illustrative of the ups and downs of the IPO process in Mexico. Fibra Uno, the parent company of Fibra Next and the largest REIT in Latin America, intended to launch the IPO in 2023, but tax authorities refused to sign off, scuttling the deal.
In 2024, the same officials apparently weren’t satisfied with the paperwork. The actual cause of the delays is unclear; both parties refused to comment. Regardless, Fibra Next has an extensive commercial real estate portfolio with total assets of 754,000 square meters of area, spanning major logistical corridors in the Valley of Mexico, Guadalajara, Queretaro, and Cancun.
With its IPO, the company raised 8 billion pesos, which will certainly catalyze the 500,000 square meters of additional area the firm has under development.
Between The Lines
In a speech at the celebration of the BMV’s 130 year anniversary, last December, the Secretary of the Treasury, Rogelio Ramirez de la O, said, in part, “The market capitalization of domestic companies on the Mexican stock market is equivalent to just 31% of the Gross Domestic Product, well below the OECD average of 120%. Additionally, the low number of initial public offerings in recent years, along with an increase in the number of companies opting to delist, is a cause for concern. The above indicators underscore the need for a comprehensive strategy that encourages business participation through collaboration between the private sector, regulators, and the government.”
The rather dismal market capitalization and the decline of listed companies have been variously attributed to market uncertainty and low valuations, similar to the grousing in London. And the complaints are sort of obliquely acknowledged in statements by top officials.
For example, Victoria Rodriguez Ceja, Governor of the Bank of Mexico, stated on the trading floor of BMV, around the same time, “We must redouble our efforts to continue strengthening the capital and debt markets and continue promoting their development and growth. This can be achieved by eliminating barriers to entry, thus fostering competition and the access of new participants.”
While both London and Mexico face structural obstacles to growth, their trajectories seem to be diverging sharply. Capital is migrating toward regions with growth potential, regulatory flexibility, and an appetite for risk. As London wrestles with the hangover of Brexit, rigid ESG rules, and dwindling valuations, Mexico’s cautious revival suggests that opportunity is no longer confined to traditional centers of finance.
Author: Tim Tolka, Senior Reporter
#London #Mexico #IPO #Listings #LSEG
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
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