🔗 Share this article

The shift was more a drizzle than a deluge, yet the climate changed for IPOs in the UK capital during 2025. H1 was exceptionally dry as geopolitical tensions created uncertainty: money raised from new listings hit a low point in a prolonged slump beginning 2022. However statistics show a significant increase in activity in the second half, albeit still well below the heights of 2021.

A Welcome Development for the Market and Treasury

This mini-revival offers some reassurance for each of the LSE and the Treasury. For the exchange, the lack of new listings – compared with capital raises by already listed companies – has proved problematic in recent years, particularly after the UK missed out on the high-profile listing of technology firm Arm Holdings in 2023. At the same time, the chancellor is promoting the advantages of investing in stocks, a task that is more straightforward when there is a steady buzz of IPO candidates.

The Newcomers

Not all of the recent entrants are household names. The most significant debut was Texas-based property firm Fermi – and that was a simultaneous 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 activity in 2025 is strong evidence of what is to come, with many companies in advanced preparations for a IPO in London in 2026," comments LSE chief executive Julia Hoggett.

Her view seems justified. Stock markets are strong, which encourages founders 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 increasingly appealing.

Upcoming Candidates

A major 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 is competing to be the venue – Sweden's market has emerged as a rival – but financial advisors are in place. Visma, long-supported by British private equity firm Hg Capital, is thought to be at least €20bn, more than enough to qualify for the premier index.

Further prospects include:

• UK veterinary group IVC Evidensia, whose path to market 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 shift in sentiment would cool interest, but the UK listing queue seems more robust than it has for years. "There has been confidence build with companies considering listing, who have been reassured by the market momentum," observes Brian Hanratty of investment firm Peel Hunt.

The Need for Freshness

Yet London is in need of an wave of innovation. Amid the mini-pick-up, fintech company Wise revealed a switch of its primary listing to the US. At the same time, the natural churn from M&A and departures kept shrinking the number of listed firms; by the end of November, there were 930 companies with a premium quote in London, a decrease from 972 at the beginning of the year.

As part of fiscal policy, the chancellor unveiled a temporary tax break for new listings. This small incentive on the tax on share purchases is probably only a minor consideration for issuers and investors. But, it would still be politically useful if the flotation activity accelerates at the same time. A sustained recovery is long awaited – and must endure longer than a brief half-year.