🔗 Share this article

It wasn't quite a downpour after the drought, but the climate improved for IPOs in the City during the past year. The initial six months was exceptionally dry as new US trade policies upset everything: money raised from new listings hit a low point in a prolonged slump dating back to 2022. Yet statistics show a significant increase in deal flow in the latter six months, albeit still well below the levels of the previous peak.

Good News for the Market and Treasury

This mini-revival is likely a welcome sight for each of the London Stock Exchange and the finance minister. For the LSE, the lack of new listings – compared with fundraisings by already listed companies – has proved problematic in the past few years, especially after the UK missed out on the high-profile listing of chip designer Arm Holdings in 2023. Concurrently, the chancellor is promoting the joys of investing in stocks, a mission that is more straightforward when there is a steady buzz of IPO candidates.

Recent Listings

Hardly any of 2025's newcomers qualify as widely recognized brands. The most significant debut was US data centre real estate group Fermi – which opted for a dual listing with the US Nasdaq exchange. More familiar UK names included the canned fish producer Princes Group, which secured £400m, and the financial services firm Shawbrook.

"The momentum this year is a clear indicator of what is to come, with numerous firms in advanced preparations for a listing in London in 2026," comments exchange CEO Julia Hoggett.

This assessment is likely accurate. Equity valuations are high, which encourages owners to realize value. Furthermore, the cycle of private equity funds trading portfolio companies may have run its course; the stock market, the original exit route, looks like a better option.

The 2026 Pipeline

A major early IPO of the coming year is anticipated to be Norwegian Visma, one of the continent's largest 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 British private equity firm Hg Capital, is valued at around €20bn, more than enough to enter the FTSE 100.

Further prospects include:

• Bristol-based veterinary group IVC Evidensia, whose path to market is more defined following a regulatory 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 probably stall progress, but the schedule of flotations appears healthier than it has since the last boom. "We have seen assurance slowly return with companies considering listing, who have been encouraged by the recent deals," observes Brian Hanratty of broker Peel Hunt.

Headwinds Persist

Yet London definitely needs 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 ongoing attrition from takeovers and delistings further diminished the ranks of listed firms; by the end of November, there were fewer than a thousand companies with a main market listing in London, down from 972 at the start of the year.

Recently, the finance minister unveiled a three-year post-IPO stamp duty holiday. This limited relief on the tax on stock transactions is just one element for issuers and investors. Yet, it would still be politically useful if the IPO market gathers pace at the same time. A sustained recovery is overdue – and must endure longer than six months.