🔗 Share this article

The shift was more a drizzle than a deluge, yet the weather shifted for IPOs in the UK capital during the course of last year. H1 was exceptionally dry as new US trade policies upset everything: IPO proceeds reached a nadir in a difficult period dating back to 2022. However data indicate a marked improvement in listings in the latter six months, even if still far short the heights of 2021.

Relief for the Exchange and the Chancellor

This mini-revival offers some reassurance for each of the London Stock Exchange and the Treasury. For the exchange, the dearth of new listings – as opposed to fundraisings by existing companies – has proved problematic in recent years, especially after the UK failed to land the high-profile listing of chip designer Arm Holdings in 2023. Concurrently, the chancellor is advocating for the joys of investing in stocks, a endeavor that is easier when there is a steady buzz of IPO candidates.

Recent Listings

Not all of the recent entrants are household names. The biggest listing was US data centre real estate group Fermi – which opted for a dual listing with the US Nasdaq exchange. Better-known UK names included the £1.2bn tinned tuna maker Princes Group, which raised £400m, and the financial services firm Shawbrook.

"The momentum in 2025 is a clear indicator of what is to come, with a host of businesses in advanced preparations for a flotation in London in 2026," comments exchange CEO Julia Hoggett.

This assessment is likely accurate. Equity valuations are elevated, which encourages shareholders to monetize their stakes. Furthermore, the merry-go-round of buyout firms trading portfolio companies may have peaked; the public markets, the original exit route, looks increasingly appealing.

Prospects for Next Year

The most important potential listing of 2026 is anticipated to be Norwegian Visma, one of Europe's biggest tech firms, with thousands of employees. London must still be chosen – Sweden's market has entered the fray – but financial advisors are already appointed. Visma, long-supported by UK-based private equity firm Hg Capital, is thought to be more than €20bn, easily sufficient to enter the FTSE 100.

Additional candidates include:

• UK veterinary group IVC Evidensia, whose route is more defined following a regulatory review. It runs 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 likely delay plans, but the schedule of flotations looks in better shape than it has since the last boom. "There has been confidence build with IPO issuers, who have been encouraged by the recent deals," observes Brian Hanratty of broker Peel Hunt.

Headwinds Persist

But London is in need of an injection of freshness. Amid the mini-pick-up, payments firm Wise disclosed a move of its primary listing to the US. Meanwhile, the natural churn from M&A and departures continued to reduce the ranks of public companies; by the close of autumn, there were fewer than a thousand companies with a premium quote in London, a decrease from 972 at the beginning of the year.

As part of fiscal policy, the finance minister proposed a three-year post-IPO stamp duty holiday. This limited relief on the levy on share purchases is probably only a minor consideration for issuers and investors. Nevertheless, it would prove advantageous if the IPO market accelerates concurrently. A sustained recovery is crucial – and has to be more than longer than six months.