🔗 Share this article

The shift was more a drizzle than a deluge, but the climate improved for public offerings in the City during the past year. H1 was properly parched as President Trump's tariff agenda upset everything: fundraisings from flotations reached a nadir in a prolonged slump dating back to 2022. Yet statistics indicate a notable pick-up in deal flow in the H2, even if still billions away the levels of the last boom year.

A Welcome Development for the LSE and Rachel Reeves

This mini-revival will have come as a relief for both the LSE and the Treasury. For the LSE, the scarcity of fresh IPOs – rather than fundraisings by already listed companies – has become an embarrassment in the past few years, especially after the UK failed to land the major listing of technology firm Arm Holdings in 2023. Meanwhile, the chancellor is promoting the advantages of investing in stocks, a task that is simpler when there is a constant flow of IPO candidates.

2025's Entrants

Few of last year's listings can be described as household names. The largest IPO was US property firm Fermi – which opted for a dual listing with the US Nasdaq exchange. Better-known 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 what is to come, with many companies in advanced preparations for a listing in London next year," argues LSE chief executive Julia Hoggett.

She is probably correct. Stock markets are high, which motivates founders to realize value. Furthermore, the cycle of private equity funds trading portfolio companies may have run its course; the stock market, the more traditional venue, looks relatively more attractive.

Prospects for Next Year

The most important potential listing of 2026 is anticipated to be Oslo-based Visma, one of Europe's biggest tech firms, with 17,500 employees. The LSE must still be chosen – Sweden's market has been making a late challenge – but underwriters are in place. Visma, backed by UK-based private equity firm Hg Capital, is valued at around €20bn, more than enough to qualify for the FTSE 100.

Other possibilities include:

• Bristol-based veterinary group IVC Evidensia, whose route is more defined following a competition watchdog review. It runs thousands of clinics in 19 countries.
• The RAC roadside recovery business (and potentially 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 London IPO pipeline seems more robust than it has in a long time. "We have seen assurance gradually grow with companies considering listing, who have been reassured by the recent deals," says Brian Hanratty of broker Peel Hunt.

The Need for Freshness

However London definitely needs an injection of freshness. Amid the modest recovery, fintech company Wise announced a move of its primary listing to the US. Meanwhile, the ongoing attrition from takeovers and delistings further diminished the number 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 chancellor proposed a three-year post-IPO stamp duty holiday. This modest giveaway on the tax on stock transactions is just one element for companies and their backers. But, it would still be politically useful if the IPO market accelerates at the same time. An improvement is overdue – and needs to last longer than six months.