The shift was more a drizzle than a deluge, but the environment improved for public offerings in London during the course of last year. The initial six months was properly parched as President Trump's tariff agenda upset everything: fundraisings from flotations reached a nadir in a prolonged slump that started 2022. Yet statistics show a notable pick-up in deal flow in the H2, though still far short the heights of the last boom year.
A Welcome Development for the Exchange and the Chancellor
This uptick is likely a welcome sight for each of the UK's main market and the Treasury. For the exchange, the dearth of new listings – rather than capital raises by already listed companies – has proved problematic in the past few years, particularly after London missed out on the major listing of technology firm Arm Holdings in 2023. At the same time, Reeves is advocating for the advantages of investing in stocks, a endeavor that is simpler when there is a regular stream of new arrivals.
2025's Entrants
Few of 2025's newcomers qualify as widely recognized brands. The biggest listing was Texas-based data centre real estate group Fermi – and that was a dual listing with the US Nasdaq exchange. More familiar UK names included the canned fish producer Princes Group, which secured £400m, and the financial services firm Shawbrook.
"The activity in 2025 is very much a sign of things to come, with numerous firms gearing up for a listing in London next year," comments exchange CEO Julia Hoggett.
Her view seems justified. Share prices are strong, which incentivizes owners to monetize their stakes. Additionally, the cycle of buyout firms trading portfolio companies may have run its course; the public markets, the original exit route, looks relatively more attractive.
The 2026 Pipeline
The most important potential listing of 2026 should be Norwegian Visma, one of Europe's biggest software companies, with 17,500 employees. The LSE is competing to be the venue – Sweden's market has emerged as a rival – but investment banking advisers are already appointed. Visma, backed by UK-based private equity firm Hg Capital, is valued at at least €20bn, more than enough to join the FTSE 100.
Other possibilities include:
- UK veterinary group IVC Evidensia, whose path to market is clearer following a competition watchdog review. It operates 2,700 sites in 19 countries.
- The RAC roadside recovery business (and possibly the AA too).
- The combined Waterstones and Barnes & Noble bookshop chains.
- Fintech payments platform Ebury and online travel agent Loveholidays.
A market downturn would probably stall progress, but the London IPO pipeline looks in better shape than it has since the last boom. "There has been confidence build with companies considering listing, who have been reassured by the activity," observes Brian Hanratty of broker Peel Hunt.
Challenges Remain
Yet London definitely needs an injection of freshness. During the modest recovery, payments firm Wise revealed a move of its primary listing to the US. Meanwhile, the ongoing attrition from takeovers and delistings continued to reduce the ranks of listed firms; by the close of autumn, there were fewer than a thousand companies with a main market listing in London, a decrease from 972 at the beginning of the year.
Recently, the chancellor unveiled a three-year post-IPO stamp duty holiday. This modest giveaway on the tax on stock transactions is likely a secondary factor for issuers and investors. Nevertheless, it would still be advantageous if the IPO market accelerates concurrently. An improvement is crucial – and needs to last longer than a brief half-year.