Haleon’s listing shows the woes of the London Stock Exchange

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Haleon’s listing shows the woes of the London Stock Exchange
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It’s a big debut for a firm that sells toothpaste, among other things. GlaxoSmithKline is spinning out its consumer health-care division to focus on developing new drugs and vaccines

welcomed its largest new entrant in over a decade on July 18th. GlaxoSmithKline , a pharmaceuticals giant included in the100 index of leading shares, is spinning out its consumer health-care division, in order to focus on developing new drugs and vaccines. Each ofshare they owned. Haleon started trading with a market capitalisation of a little over £30.5bn .

The listing is emblematic of the travails of a stockmarket whose best days are behind it. Haleon is the bourse’s largest debut since Glencore, a mining giant, joined thein 2011. This, however, is not a fast-growing technology or life-sciences firm. It is a long-standing business selling Sensodyne toothpaste and smartly packaged ibuprofen.

Why has the City’s appeal dimmed? One big reason is the departure of long-term capital. Twenty years ago British defined-benefit pension funds had around half their assets in London-listed equities; today the share is less than 3%. Another is that tech firms worry City investors are too focused on short-term profits to take their businesses seriously, so they prefer to list elsewhere instead.

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