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While not a flood following a dry spell, yet the environment shifted for public offerings in London during the course of last year. The initial six months was exceptionally dry as new US trade policies upset everything: fundraisings from flotations were the lowest in a difficult period beginning 2022. Yet figures reveal a notable pick-up in listings in the H2, though still billions away the volumes of the previous peak.

Relief for the LSE and Rachel Reeves

This mini-revival will have come as a relief for each of the London Stock Exchange and the Treasury. For the exchange, the dearth of new listings – rather than capital raises by existing companies – has become an embarrassment in the past few years, especially after the UK lost the high-profile listing of chip designer Arm Holdings in 2023. At the same time, Reeves is trying to talk up the joys of long-term equity investment, a mission that is easier when there is a regular stream of IPO candidates.

2025's Entrants

Not all of last year's listings are household names. The biggest listing was US property firm Fermi – which opted for a simultaneous listing with the American tech market. More familiar UK names included the canned fish producer Princes Group, which generated £400m, and the specialist lender Shawbrook.

"The pipeline this year is a clear indicator of future trends, with a host of businesses gearing up for a IPO in London next year," states LSE chief executive Julia Hoggett.

This assessment is likely accurate. Equity valuations are elevated, which incentivizes owners to cash in. Additionally, the cycle of buyout firms selling assets to each other may have run its course; the public markets, the more traditional venue, looks like a better option.

The 2026 Pipeline

A major potential listing of the coming year could be Norwegian Visma, one of Europe's biggest software companies, with thousands of employees. London first needs to be selected – Stockholm has emerged as a rival – but financial advisors are in place. Visma, long-supported by UK-based private equity firm Hg Capital, is valued at more than €20bn, more than enough to enter the Footsie.

Other possibilities include:

• Bristol-based veterinary group IVC Evidensia, whose path to market is more defined following a regulatory review. It runs 2,700 sites 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 likely delay plans, but the London IPO pipeline looks in better shape than it has since the last boom. "There has been confidence build with IPO issuers, who have been reassured by the market momentum," says Brian Hanratty of broker Peel Hunt.

The Need for Freshness

But London still requires an injection of freshness. During the mini-pick-up, fintech company Wise revealed a transfer of its primary listing to the US. At the same time, the natural churn from M&A and departures continued to reduce the total of listed firms; by the end of November, there were 930 companies with a main market listing 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 modest giveaway on the levy on share purchases is likely a secondary factor for companies and their backers. But, it would prove politically useful if the flotation activity gathers pace in tandem. Progress is long awaited – and needs to last longer than a brief half-year.