Making the public-markets proposition work harder for UK-listed companies
By Lewis Burnett, Head of Corporate Broking, Deutsche Bank
Global equity capital allocation has become increasingly skewed: best typified in the last couple of years with the increasing concentration of demand for major US technology stocks and ‘hyperscalers’, all of which is reinforced by passive and benchmark-driven investment flows. Differences in the composition of leading indices have also contributed to a valuation gap between the US and UK markets. That disparity should not necessarily be mistaken for a difference in the quality of the underlying companies, nor their appeal to investors.
Selective capital markets events, including overseas relistings, often dominate media focus on the health of individual bourses, not least the UK. However, investors are globally connected, shares are increasingly fungible across venues, and London-listed businesses have significant international reach, with strong long-term prospects. Media focus on a small part of the operation of stock exchanges obscures the rude health of the equity market, and the key role played by London.
Deutsche Bank’s latest Raised in London survey provides grounds for confidence. Some 85% of respondents have experienced an increase in international institutional ownership over the past year, including 26% who reported a dramatic increase.
However, London faces intense competition. More than two-thirds of respondents (68%) are under pressure to move or add a listing overseas, while three-quarters have considered doing so. Positive sentiment now needs to translate into stronger participation and more forthright policy action. On a globally connected playing field, UK policymakers have often been criticised for not playing the same game as their competitors.
Democratising markets
Liquidity can influence perspectives on investability, without intrinsically driving valuation. Retail investors can contribute to a broader ownership base, but UK retail investor participation remains lower than it could be. This has been attributed to a host of factors, including policy, practical ease of access and culture. Regulators and the industry are widening access to public and private markets through new investment platforms.
Cultural attitudes in the UK certainly matter. Investing remains unfamiliar to many people, and the City can appear remote from their everyday lives. Demystifying investing will take sustained effort before more people see capital markets as relevant to them.
Attracting the right investor
Every company engaging with the equity market needs the right investors on its register. The appropriate investor base will vary with the company’s size, profile and the natural appetite for its shares.
A smaller, less well-known business may need a corporate broker’s platform to drive investors to its proposition. A household name presents a different challenge: investors already typically have a view, so providing advice to that company on how to position its equity story becomes especially important.
Deutsche Bank maintains both complementary capabilities. We connect companies with domestic and international investors while advising boards on how their proposition is presented to the market. This combination lies at the heart of the traditional corporate-broking model.
London has the expertise and market infrastructure to compete internationally. Improvement will still require sustained work from companies and their advisers to turn this encouraging investor interest into stronger ownership, liquidity and long-term valuations.
By accepting these materials, the recipient shall be deemed to have agreed to the provisions and limitations set out in this notice. These materials have been prepared by representatives of the Investment Banking division of Deutsche Bank AG or, as the case may be, any of its affiliates (as applicable, “DB”) and represent only the views and opinions of the individual authors. They have not been reviewed, endorsed, or otherwise approved by, and are not a work product of, any other department or division of DB, including the Research Department. These materials are intended merely to highlight aspects of the relevant matters to which they relate, are for general information purposes only and are intended only for use by the recipient for his/her own personal reference. These materials are solely distributed by the relevant DB entities that possess the necessary licenses to distribute the materials in the respective jurisdictions (and shall not otherwise be intended for distribution). These materials are being directed at persons who are professionals and are not intended for retail customer use. Not all products or services that may be mentioned in the materials are available in all jurisdictions. In any event, no offers, sales, resales, or delivery of any products or services as may be described herein or any materials relating to any such products or services may be made in or from any jurisdiction except in circumstances which would result with compliance with any applicable laws and regulations and which would not impose any obligations on DB. DB has not acted (and does not purport to act in any way) in a fiduciary capacity. These materials are not intended to be comprehensive and do not constitute financial, investment, legal, regulatory, accounting, actuarial, tax or other advice, nor do they constitute an offer or solicitation for the purchase or sale of any financial instrument or to enter into any other agreement or a recommendation for any investment product or strategy. The recipient must make their own independent assessment and such investigation as the recipient deems necessary in relation to the matters set out herein. No reliance should be placed upon these materials in connection with any actual transaction or investment. These materials speak only as of their date, and any views expressed in these materials are based upon conditions as they exist and are, therefore, subject to change. Any such changes and/or events occurring after the date of these materials could materially affect the content and views set out in these materials. These materials do not purport to contain a complete description of the matters set out herein. The analyses contained in these materials are not, and do not purport to be, appraisals of the assets, stock or business of any person. These materials may not be summarized or otherwise reproduced, distributed or referred to, in whole or in part, without the prior written consent of DB. The information used in preparing these materials was obtained from sources believed to be reliable, but DB does not assume any responsibility for the independent verification of any such information and has relied on such information being complete and accurate in all material respects. 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Any statement, estimate or projection included in these materials (or upon which any of the conclusions contained in these materials are based) with respect to anticipated future performance may prove not to be correct. No representation or warranty, express or implied, is given as to the completeness or accuracy of any forward-looking statement contained in these materials or the accuracy of any of the underlying assumptions. Information about past performance is given for illustrative purposes only and should not be relied upon and is not an indication of future performance. DB has not verified the achievability of any estimate or forecast, nor of any of the methods underlying the preparation of any estimate or forecast. The products and investments mentioned in these materials are subject to investment risk, including (without limitation) market fluctuations, regulatory change, counterparty risk, possible delays in repayment and loss of income and principal invested. The value of investments can fall as well as rise and an investor may not get back the amount originally invested at any point in time. No assurance can be given that any investment described herein would yield favourable investment results. DB may engage in transactions in a manner inconsistent with any views set out herein. DB trades or may trade as principal in any instruments mentioned herein (or related derivatives), may have proprietary positions in these instruments (or related derivatives) and/or may make a market in these instruments (or related derivatives) or (amongst other things) provide advice or loans or other financial products to, or participate in any underwriting or restructuring or other transactions with or in respect of persons mentioned herein. Deutsche Bank AG is a stock corporation (Aktiengesellschaft) incorporated under the laws of the Federal Republic of Germany with its principal office in Frankfurt am Main. It is registered with the local district court (Amtsgericht) in Frankfurt am Main under No HRB 30000 and licensed to carry on banking business and to provide financial services. The London branch of Deutsche Bank AG is registered as a branch office in the register of companies for England and Wales at Companies House (branch registration number BR000005) with its registered branch office address and principal place of business at 21, Moorfields, London EC2Y 9DB. Deutsche Bank AG is subject to supervision by the European Central Bank (ECB), Sonnemannstrasse 22, 60314 Frankfurt am Main, Germany, and the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin), Graurheindorfer Strasse 108, 53117 Bonn and Marie-Curie-Strasse 24-28, 60439 Frankfurt am Main, Germany. With respect to activities undertaken in the United Kingdom, Deutsche Bank AG is authorised by the Prudential Regulation Authority. It is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of Deutsche Bank AG’s authorisation and regulation by the Prudential Regulation Authority are available from Deutsche Bank AG on request.
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By Lewis Burnett, Head of Corporate Broking, Deutsche Bank
Global equity capital allocation has become increasingly skewed: best typified in the last couple of years with the increasing concentration of demand for major US technology stocks and ‘hyperscalers’, all of which is reinforced by passive and benchmark-driven investment flows. Differences in the composition of leading indices have also contributed to a valuation gap between the US and UK markets. That disparity should not necessarily be mistaken for a difference in the quality of the underlying companies, nor their appeal to investors.
Selective capital markets events, including overseas relistings, often dominate media focus on the health of individual bourses, not least the UK. However, investors are globally connected, shares are increasingly fungible across venues, and London-listed businesses have significant international reach, with strong long-term prospects. Media focus on a small part of the operation of stock exchanges obscures the rude health of the equity market, and the key role played by London.
Deutsche Bank’s latest Raised in London survey provides grounds for confidence. Some 85% of respondents have experienced an increase in international institutional ownership over the past year, including 26% who reported a dramatic increase.
However, London faces intense competition. More than two-thirds of respondents (68%) are under pressure to move or add a listing overseas, while three-quarters have considered doing so. Positive sentiment now needs to translate into stronger participation and more forthright policy action. On a globally connected playing field, UK policymakers have often been criticised for not playing the same game as their competitors.
Democratising markets
Liquidity can influence perspectives on investability, without intrinsically driving valuation. Retail investors can contribute to a broader ownership base, but UK retail investor participation remains lower than it could be. This has been attributed to a host of factors, including policy, practical ease of access and culture. Regulators and the industry are widening access to public and private markets through new investment platforms.
Recent initiatives include the Public Offers and Admissions to Trading Regulations and the industry-funded Invest for the Future campaign. It is too early to identify a statistically significant change in participation and improving access addresses only part of the challenge.
Cultural attitudes in the UK certainly matter. Investing remains unfamiliar to many people, and the City can appear remote from their everyday lives. Demystifying investing will take sustained effort before more people see capital markets as relevant to them.
Attracting the right investor
Every company engaging with the equity market needs the right investors on its register. The appropriate investor base will vary with the company’s size, profile and the natural appetite for its shares.
A smaller, less well-known business may need a corporate broker’s platform to drive investors to its proposition. A household name presents a different challenge: investors already typically have a view, so providing advice to that company on how to position its equity story becomes especially important.
Deutsche Bank maintains both complementary capabilities. We connect companies with domestic and international investors while advising boards on how their proposition is presented to the market. This combination lies at the heart of the traditional corporate-broking model.
London has the expertise and market infrastructure to compete internationally. Improvement will still require sustained work from companies and their advisers to turn this encouraging investor interest into stronger ownership, liquidity and long-term valuations.
Read the ‘Raised in London’ 2026 report for more insights.
IMPORTANT NOTICE
By accepting these materials, the recipient shall be deemed to have agreed to the provisions and limitations set out in this notice. These materials have been prepared by representatives of the Investment Banking division of Deutsche Bank AG or, as the case may be, any of its affiliates (as applicable, “DB”) and represent only the views and opinions of the individual authors. They have not been reviewed, endorsed, or otherwise approved by, and are not a work product of, any other department or division of DB, including the Research Department. These materials are intended merely to highlight aspects of the relevant matters to which they relate, are for general information purposes only and are intended only for use by the recipient for his/her own personal reference. These materials are solely distributed by the relevant DB entities that possess the necessary licenses to distribute the materials in the respective jurisdictions (and shall not otherwise be intended for distribution). These materials are being directed at persons who are professionals and are not intended for retail customer use. Not all products or services that may be mentioned in the materials are available in all jurisdictions. In any event, no offers, sales, resales, or delivery of any products or services as may be described herein or any materials relating to any such products or services may be made in or from any jurisdiction except in circumstances which would result with compliance with any applicable laws and regulations and which would not impose any obligations on DB. DB has not acted (and does not purport to act in any way) in a fiduciary capacity. These materials are not intended to be comprehensive and do not constitute financial, investment, legal, regulatory, accounting, actuarial, tax or other advice, nor do they constitute an offer or solicitation for the purchase or sale of any financial instrument or to enter into any other agreement or a recommendation for any investment product or strategy. The recipient must make their own independent assessment and such investigation as the recipient deems necessary in relation to the matters set out herein. No reliance should be placed upon these materials in connection with any actual transaction or investment. These materials speak only as of their date, and any views expressed in these materials are based upon conditions as they exist and are, therefore, subject to change. Any such changes and/or events occurring after the date of these materials could materially affect the content and views set out in these materials. These materials do not purport to contain a complete description of the matters set out herein. The analyses contained in these materials are not, and do not purport to be, appraisals of the assets, stock or business of any person. These materials may not be summarized or otherwise reproduced, distributed or referred to, in whole or in part, without the prior written consent of DB. The information used in preparing these materials was obtained from sources believed to be reliable, but DB does not assume any responsibility for the independent verification of any such information and has relied on such information being complete and accurate in all material respects. DB makes no representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such information, these materials (including any opinion contained in these materials), any of their contents or any of the results that can be derived from these materials and no responsibility or liability is accepted by DB in relation to such materials including (without limitation): (i) in relation to the distribution of possession of these materials in any jurisdiction; (ii) for any loss or damage of any kind whatsoever arising as a result of the use or misuse of these materials; (iii) for updating or revising these materials; or (iv) for correcting any inaccuracy in these materials. Analyses and opinions contained in these materials may be based on assumptions that, if altered, could materially change the analyses or opinions expressed. No audit of these materials has been undertaken by an independent third party. Any statement, estimate or projection included in these materials (or upon which any of the conclusions contained in these materials are based) with respect to anticipated future performance may prove not to be correct. No representation or warranty, express or implied, is given as to the completeness or accuracy of any forward-looking statement contained in these materials or the accuracy of any of the underlying assumptions. Information about past performance is given for illustrative purposes only and should not be relied upon and is not an indication of future performance. DB has not verified the achievability of any estimate or forecast, nor of any of the methods underlying the preparation of any estimate or forecast. The products and investments mentioned in these materials are subject to investment risk, including (without limitation) market fluctuations, regulatory change, counterparty risk, possible delays in repayment and loss of income and principal invested. The value of investments can fall as well as rise and an investor may not get back the amount originally invested at any point in time. No assurance can be given that any investment described herein would yield favourable investment results. DB may engage in transactions in a manner inconsistent with any views set out herein. DB trades or may trade as principal in any instruments mentioned herein (or related derivatives), may have proprietary positions in these instruments (or related derivatives) and/or may make a market in these instruments (or related derivatives) or (amongst other things) provide advice or loans or other financial products to, or participate in any underwriting or restructuring or other transactions with or in respect of persons mentioned herein. Deutsche Bank AG is a stock corporation (Aktiengesellschaft) incorporated under the laws of the Federal Republic of Germany with its principal office in Frankfurt am Main. It is registered with the local district court (Amtsgericht) in Frankfurt am Main under No HRB 30000 and licensed to carry on banking business and to provide financial services. The London branch of Deutsche Bank AG is registered as a branch office in the register of companies for England and Wales at Companies House (branch registration number BR000005) with its registered branch office address and principal place of business at 21, Moorfields, London EC2Y 9DB. Deutsche Bank AG is subject to supervision by the European Central Bank (ECB), Sonnemannstrasse 22, 60314 Frankfurt am Main, Germany, and the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin), Graurheindorfer Strasse 108, 53117 Bonn and Marie-Curie-Strasse 24-28, 60439 Frankfurt am Main, Germany. With respect to activities undertaken in the United Kingdom, Deutsche Bank AG is authorised by the Prudential Regulation Authority. It is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of Deutsche Bank AG’s authorisation and regulation by the Prudential Regulation Authority are available from Deutsche Bank AG on request.
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