It wasn't quite a downpour after the drought, but the climate shifted for IPOs in the UK capital during the past year. H1 was exceptionally dry as new US trade policies created uncertainty: IPO proceeds hit a low point in a difficult period dating back to 2022. Yet statistics reveal a notable pick-up in listings in the second half, albeit still far short the levels of the previous peak.
Relief for the Exchange and the Chancellor
The modest recovery is likely a welcome sight for both the UK's main market and the finance minister. For the LSE, the dearth of company debuts – compared with fundraisings by existing companies – has proved problematic in the past few years, especially after London failed to land the major listing of technology firm Arm Holdings in 2023. Concurrently, Reeves is trying to talk up the joys of long-term equity investment, a endeavor that is simpler when there is a constant flow of market entrants.
The Newcomers
Few of the recent entrants can be described as household names. The largest IPO was Texas-based property firm Fermi – which opted for a dual listing with the American tech market. Better-known British companies included the £1.2bn tinned tuna maker Princes Group, which raised £400m, and the specialist lender Shawbrook.
"The momentum this year is very much a sign of things to come, with numerous firms actively preparing for a IPO in London in 2026," comments exchange CEO Julia Hoggett.
Her view seems justified. Share prices are high, which motivates shareholders to realize value. And, the merry-go-round of buyout firms selling assets to each other may have peaked; the stock market, the original exit route, looks increasingly appealing.
The 2026 Pipeline
A major early IPO of the coming year should be Oslo-based Visma, one of Europe's biggest tech firms, with 17,500 employees. London is competing to be the venue – Sweden's market has entered the fray – but financial advisors are in place. Visma, long-supported by British private equity firm Hg Capital, is estimated to be at least €20bn, more than enough to join the premier index.
Other possibilities include:
- UK veterinary group IVC Evidensia, whose route is clearer following a regulatory 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 UK listing queue appears healthier than it has for years. "We have seen confidence gradually grow with IPO issuers, who have been heartened by the recent deals," says Brian Hanratty of investment firm Peel Hunt.
Headwinds Persist
But London still requires an influx of new blood. Amid the mini-pick-up, fintech company Wise disclosed a move of its main market quote to the US. Meanwhile, the natural churn from takeovers and delistings further diminished the total of public companies; by the close of autumn, there were 930 companies with a premium quote in London, down from 972 at the beginning of the year.
Recently, the finance minister proposed a temporary tax break for new listings. This limited relief on the levy on share purchases is probably only a minor consideration for companies and their backers. Nevertheless, it would prove politically useful if the flotation activity accelerates concurrently. An improvement is long awaited – and must endure longer than a brief half-year.
