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While not a flood following a dry spell, yet the climate shifted for IPOs in the UK capital during the past year. H1 was severely lacking as geopolitical tensions created uncertainty: money raised from new listings reached a nadir in a miserable run that started 2022. However figures indicate a notable pick-up in deal flow in the latter six months, though still billions away the heights of the previous peak.

A Welcome Development for the LSE and Rachel Reeves

This uptick offers some reassurance for each of the LSE and the finance minister. For the former, the scarcity of new listings – rather than fundraisings by already listed companies – has become an embarrassment in recent years, particularly after London lost the major listing of chip designer Arm Holdings in 2023. Concurrently, the chancellor is trying to talk up the benefits of long-term equity investment, a endeavor that is easier when there is a regular stream of market entrants.

Recent Listings

Few of 2025's newcomers are widely recognized brands. The biggest listing was Texas-based data centre real estate group Fermi – and that was a simultaneous listing with the American tech market. More familiar British companies included the canned fish producer Princes Group, which raised £400m, and the financial services firm Shawbrook.

"The activity in 2025 is a clear indicator of things to come, with many companies in advanced preparations for a listing in London in 2026," argues LSE chief executive Julia Hoggett.

She is probably correct. Equity valuations are strong, which motivates shareholders to realize value. Furthermore, the cycle of private equity funds trading portfolio companies may have peaked; the stock market, the more traditional venue, looks increasingly appealing.

Upcoming Candidates

The most important potential listing of the coming year should be Oslo-based Visma, one of Europe's biggest tech firms, with 17,500 employees. The LSE is competing to be the venue – Sweden's market has entered the fray – but investment banking advisers are already appointed. Visma, backed by UK-based private equity firm Hg Capital, is estimated to be around €20bn, easily sufficient to qualify for the Footsie.

Further prospects 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 as well).
• The combined Waterstones and Barnes & Noble bookshop chains.
• Fintech payments platform Ebury and online travel agent Loveholidays.

A market downturn would probably stall progress, but the London IPO pipeline looks in better shape than it has for years. "We have seen confidence gradually grow with companies considering listing, who have been encouraged by the recent deals," observes Brian Hanratty of investment firm Peel Hunt.

Challenges Remain

However London still requires an injection of freshness. During the modest recovery, fintech company Wise disclosed a move of its main market quote to the US. Meanwhile, the ongoing attrition from takeovers and delistings kept shrinking the ranks 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.

Recently, the finance minister proposed a temporary tax break for new listings. This limited relief on the levy on share purchases is likely a secondary factor for companies and their backers. But, it would still be advantageous if the IPO market accelerates in tandem. Progress is overdue – and needs to last longer than a brief half-year.