DG Innovate will cease trading on the London Stock Exchange

DG Innovate plans to exit the London Stock Exchange and has pointed to the costs and rules involved with a London listing.

The research and development company specializing in sustainable transport and energy storage said it had “found it difficult to raise sufficient funds to invest in its commercialization strategy”.

It added in a statement: “This is in part due to its current listing and the limitations of the associated prospectus rules.”

DGI actions fell more than 66 per cent this morning to 0.026p.

DGI’s exit follows a series of high-profile departures from London this year, despite efforts by policymakers to boost the market’s attractiveness with bureaucratic cuts and listing reforms.

About 88 companies had abandoned their primary listings on London’s main market by mid-December, while 18 took their place, representing the largest net exit since 2009, according to data from the then London Stock Exchange Group.

Earlier this month, FTSE group Ashtead announced plans to move its main listing to New York, in a blow to London.

The construction rental group has been listed in London since 1986, but makes almost all of its profits in the United States.

On Thursday, DGI said it was “also clear that there has been and continues to be a broad lack of demand for exposure to companies at DGI’s current stage of development within the traditional UK institutional investor base.”

He said there were no “obvious short-term catalysts” to improve conditions and claimed the costs of listing were “completely disproportionate” to the benefits of maintaining the listing.

The DGI added: “Delisting will significantly reduce the company’s cost base and help it obtain the capital it needs to invest.”

The group’s shares will be canceled on January 31.

The Labor Party has pushed through reforms to help revitalize London’s capital markets, including by consolidating pension funds to allow greater investment in domestic companies.

However, companies such as Paddy Power owner Flutter and travel group Tui shifted their main listings from London to rival hubs such as New York and Frankfurt this year.

London has lost blockbuster IPOs, including that of chip designer Arm, which listed on Wall Street in August 2023. Klarna, the buy now, pay later company, has done the same.