It wasn't quite a downpour after the drought, yet the weather improved for IPOs in the City during the course of last year. The initial six months was exceptionally dry as President Trump's tariff agenda created uncertainty: fundraisings from flotations were the lowest in a difficult period beginning 2022. Yet statistics show a significant increase in deal flow in the second half, though still far short the volumes of 2021.
A Welcome Development for the Market and Treasury
The modest recovery offers some reassurance for both the London Stock Exchange and Chancellor Rachel Reeves. For the exchange, the dearth of fresh IPOs – as opposed to fundraisings by already listed companies – has become an embarrassment in recent years, particularly after London lost the high-profile listing of chip designer Arm Holdings in 2023. At the same time, Reeves is promoting the advantages of long-term equity investment, a mission that is simpler when there is a constant flow of new arrivals.
2025's Entrants
Not all of 2025's newcomers can be described as widely recognized brands. The biggest listing was Texas-based property firm Fermi – and that was a simultaneous listing with the American tech market. More familiar UK names included the £1.2bn tinned tuna maker Princes Group, which raised £400m, and the financial services firm Shawbrook.
"The activity in 2025 is a clear indicator of future trends, with numerous firms in advanced preparations for a flotation in London in 2026," states LSE chief executive Julia Hoggett.
This assessment is likely accurate. Share prices are elevated, which incentivizes owners to cash in. Additionally, the cycle of private equity funds trading portfolio companies may have reached its natural limit; the stock market, the original exit route, looks like a better option.
The 2026 Pipeline
The most important early IPO of the coming year is anticipated to be Oslo-based Visma, one of Europe's biggest tech firms, with thousands of employees. London first needs to be selected – Sweden's market has emerged as a rival – but investment banking advisers are in place. Visma, backed by British private equity firm Hg Capital, is estimated to be more than €20bn, easily sufficient to qualify for the Footsie.
Other possibilities include:
- Bristol-based 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 as well).
- The combined Waterstones and Barnes & Noble bookshop chains.
- Fintech payments platform Ebury and online travel agent Loveholidays.
A shift in sentiment would probably stall progress, but the schedule of flotations appears healthier than it has for years. "We have seen confidence build with companies considering listing, who have been heartened by the recent deals," says Brian Hanratty of broker Peel Hunt.
The Need for Freshness
Yet London still requires an wave of innovation. Amid the modest recovery, fintech company Wise announced a move of its primary listing to the US. At the same time, the natural churn from takeovers and delistings further diminished 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 beginning of the year.
In her November budget, the finance minister proposed a temporary tax break for new listings. This small incentive on the tax on stock transactions is likely a secondary factor for companies and their backers. Yet, it would still be politically useful if the flotation activity gathers pace at the same time. An improvement is crucial – and has to be more than longer than six months.
