🔗 Share this article

It wasn't quite a downpour after the drought, yet the environment changed for stock market listings in the City during the course of last year. The initial six months was severely lacking as new US trade policies disrupted markets: fundraisings from flotations reached a nadir in a difficult period that started 2022. Yet figures show a significant increase in listings in the H2, though still far short the levels of 2021.

Good News for the Market and Treasury

The modest recovery will have come as a relief for both the LSE and Chancellor Rachel Reeves. For the LSE, the dearth of fresh IPOs – as opposed to capital raises by already listed companies – has been a source of concern in recent years, especially after London missed out on the major listing of chip designer Arm Holdings in 2023. At the same time, the chancellor is promoting the benefits of long-term equity investment, a endeavor that is more straightforward when there is a constant flow of IPO candidates.

Recent Listings

Hardly any of the recent entrants are widely recognized brands. The most significant debut was Texas-based property firm Fermi – which opted for a simultaneous listing with the American tech market. More familiar British companies included the £1.2bn tinned tuna maker Princes Group, which generated £400m, and the specialist lender Shawbrook.

"The momentum in 2025 is very much a sign of future trends, with many companies in advanced preparations for a listing in London in 2026," argues exchange CEO Julia Hoggett.

This assessment is likely accurate. Stock markets are strong, which motivates founders to realize value. Additionally, the cycle of buyout firms selling assets to each other may have reached its natural limit; the stock market, the more traditional venue, looks increasingly appealing.

Prospects for Next Year

A key early IPO of the coming year should be Norwegian Visma, one of Europe's biggest software companies, with thousands of employees. The LSE is competing to be the venue – Stockholm has been making a late challenge – but underwriters are already appointed. Visma, long-supported by British private equity firm Hg Capital, is thought to be at least €20bn, more than enough to qualify for the premier index.

Further prospects include:

• UK veterinary group IVC Evidensia, whose path to market is more defined following a competition watchdog review. It runs 2,700 sites in 19 countries.
• The RAC roadside recovery business (and possibly the AA as well).
• The combined Waterstones and Barnes & Noble bookshop chains.
• Fintech payments platform Ebury and online travel agent Loveholidays.

A shift in sentiment would cool interest, but the London IPO pipeline seems more robust than it has since the last boom. "There has been assurance build with IPO issuers, who have been heartened by the market momentum," observes Brian Hanratty of investment firm Peel Hunt.

Headwinds Persist

However London definitely needs an wave of innovation. Amid the modest recovery, payments firm Wise disclosed a transfer of its primary listing to the US. Meanwhile, the ongoing attrition from M&A and departures continued to reduce the total of listed firms; by the close of autumn, there were 930 companies with a premium quote in London, a decrease from 972 at the start of the year.

In her November budget, the finance minister announced a temporary tax break for new listings. This limited relief on the tax on share purchases is probably only a minor consideration for companies and their backers. But, it would prove advantageous if the IPO market accelerates in tandem. Progress is long awaited – and needs to last longer than a brief half-year.