While not a flood following a dry spell, yet the climate shifted for IPOs in the City during 2025. The initial six months was properly parched as President Trump's tariff agenda created uncertainty: money raised from new listings were the lowest in a difficult period beginning 2022. But figures indicate a significant increase in deal flow in the H2, albeit still billions away the heights of the last boom year.
Good News for the Market and Treasury
This uptick will have come as a relief for both the UK's main market and the finance minister. For the exchange, the lack of company debuts – rather than capital raises by existing companies – has been a source of concern in recent years, particularly after London failed to land the major listing of technology firm Arm Holdings in 2023. At the same time, Reeves is promoting the joys of long-term equity investment, a task that is easier when there is a constant flow of new arrivals.
Recent Listings
Few of the recent entrants can be described as widely recognized brands. The biggest listing was Texas-based data centre real estate group Fermi – which opted for a dual listing with the American tech market. More familiar British companies included the £1.2bn tinned tuna maker Princes Group, which generated £400m, and the financial services firm Shawbrook.
"The activity this year is a clear indicator of future trends, with many companies actively preparing for a flotation in London in 2026," states exchange CEO Julia Hoggett.
This assessment is likely accurate. Equity valuations are strong, which motivates founders to monetize their stakes. Additionally, the cycle of private equity funds trading portfolio companies may have reached its natural limit; the stock market, the more traditional venue, looks increasingly appealing.
The 2026 Pipeline
The most important early IPO of 2026 could be Oslo-based Visma, one of the continent's largest tech firms, with thousands of employees. The LSE first needs to be selected – Sweden's market has been making a late challenge – but financial advisors are in place. Visma, long-supported by British private equity firm Hg Capital, is thought to be more than €20bn, easily sufficient to enter the Footsie.
Additional candidates include:
- UK veterinary group IVC Evidensia, whose route is clearer following a competition watchdog review. It runs thousands of clinics in 19 countries.
- The RAC roadside recovery business (and possibly the AA too).
- The combined Waterstones and Barnes & Noble bookshop chains.
- Fintech payments platform Ebury and online travel agent Loveholidays.
An economic slowdown would likely delay plans, but the schedule of flotations looks in better shape than it has since the last boom. "We have seen assurance build with companies considering listing, who have been reassured by the recent deals," notes Brian Hanratty of broker Peel Hunt.
Challenges Remain
Yet London is in need of an influx of new blood. Amid the modest recovery, payments firm Wise revealed a move of its primary listing to the US. Meanwhile, the natural churn from M&A and departures further diminished the number of public companies; by the close of autumn, there were fewer than a thousand companies with a premium quote in London, down from 972 at the start of the year.
In her November budget, the chancellor announced a three-year post-IPO stamp duty holiday. This limited relief on the tax on share purchases is probably only a minor consideration for issuers and investors. Yet, it would prove politically useful if the flotation activity accelerates at the same time. A sustained recovery is crucial – and needs to last longer than a brief half-year.
