It wasn't quite a downpour after the drought, but the weather improved for stock market listings in the City during the past year. The first half was exceptionally dry as geopolitical tensions created uncertainty: fundraisings from flotations were the lowest in a miserable run beginning 2022. However data show a significant increase in listings in the second half, though still far short the heights of the last boom year.
Relief for the Exchange and the Chancellor
This mini-revival will have come as a relief for each of the London Stock Exchange and Chancellor Rachel Reeves. For the former, the lack of company debuts – rather than fundraisings by existing companies – has proved problematic in recent years, particularly after the UK failed to land the high-profile listing of chip designer Arm Holdings in 2023. At the same time, the finance chief is advocating for the benefits of long-term equity investment, a endeavor that is simpler when there is a steady buzz of new arrivals.
The Newcomers
Few of 2025's newcomers qualify as widely recognized brands. The largest IPO was Texas-based data centre real estate group Fermi – and that was a dual listing with the American tech market. More familiar British companies included the canned fish producer Princes Group, which secured £400m, and the financial services firm Shawbrook.
"The momentum in 2025 is very much a sign of things to come, with a host of businesses gearing up for a listing in London in 2026," comments exchange CEO Julia Hoggett.
This assessment is likely accurate. Share prices are elevated, which incentivizes shareholders to realize value. And, the merry-go-round of buyout firms trading portfolio companies may have run its course; the stock market, the original exit route, looks increasingly appealing.
The 2026 Pipeline
A key potential listing of 2026 should be Norwegian Visma, one of Europe's biggest software companies, 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 thought to be at least €20bn, easily sufficient to join the Footsie.
Further prospects include:
- UK veterinary group IVC Evidensia, whose path to market is more defined following a competition watchdog review. It operates thousands of clinics in 19 countries.
- The RAC roadside recovery business (and potentially the AA too).
- The combined Waterstones and Barnes & Noble bookshop chains.
- Fintech payments platform Ebury and online travel agent Loveholidays.
A market downturn would likely delay plans, but the UK listing queue seems more robust than it has in a long time. "There has been assurance build with IPO issuers, who have been heartened by the market momentum," observes Brian Hanratty of investment firm Peel Hunt.
The Need for Freshness
But London is in need of an injection of freshness. During the modest recovery, fintech company Wise disclosed a move of its main market quote to the US. At the same time, the natural churn from takeovers and delistings continued to reduce the total of listed firms; by the end of November, there were fewer than a thousand companies with a premium quote in London, a decrease from 972 at the beginning of the year.
Recently, the chancellor unveiled a temporary tax break for new listings. This modest giveaway on the tax on share purchases is likely a secondary factor for issuers and investors. Nevertheless, it would prove politically useful if the flotation activity comes to life in tandem. Progress is long awaited – and needs to last longer than a brief half-year.
