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While not a flood following a dry spell, but the environment improved for stock market listings in London during the past year. The initial six months was exceptionally dry as President Trump's tariff agenda disrupted markets: IPO proceeds were the lowest in a miserable run dating back to 2022. However data show a notable pick-up in listings in the H2, albeit still billions away the levels of 2021.

Relief for the LSE and Rachel Reeves

The modest recovery is likely a welcome sight for each of the London Stock Exchange and Chancellor Rachel Reeves. For the exchange, the dearth of fresh IPOs – as opposed to capital raises by already listed companies – has proved problematic in recent years, particularly after the UK missed out on the major listing of chip designer Arm Holdings in 2023. Meanwhile, the chancellor is promoting the joys of investing in stocks, a task that is simpler when there is a steady buzz of market entrants.

Recent Listings

Hardly any of last year's listings are widely recognized brands. The biggest listing was US property firm Fermi – and that was a dual listing with the US Nasdaq exchange. Better-known British companies included the canned fish producer Princes Group, which raised £400m, and the financial services firm Shawbrook.

"The activity this year is strong evidence of things to come, with many companies gearing up for a flotation in London in 2026," comments exchange CEO Julia Hoggett.

She is probably correct. Equity valuations are high, which incentivizes shareholders to monetize their stakes. Furthermore, the merry-go-round of private equity funds trading portfolio companies may have peaked; the public markets, the original exit route, looks relatively more attractive.

Prospects for Next Year

A major potential listing of 2026 is anticipated to be Norwegian Visma, one of Europe's biggest tech firms, with thousands of employees. The LSE must still be chosen – Stockholm has entered the fray – but investment banking advisers are in place. Visma, long-supported by UK-based private equity firm Hg Capital, is estimated to be at least €20bn, easily sufficient to join the premier index.

Further prospects include:

• Bristol-based veterinary group IVC Evidensia, whose route is more defined following a competition watchdog review. It runs 2,700 sites 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.

A market downturn would cool interest, but the London IPO pipeline appears healthier than it has for years. "We have seen confidence build with companies considering listing, who have been encouraged by the recent deals," observes Brian Hanratty of investment firm Peel Hunt.

Challenges Remain

But London still requires an influx of new blood. Amid the mini-pick-up, fintech company Wise revealed a transfer of its main market quote to the US. At the same time, the natural churn from M&A and departures continued to reduce the number of listed firms; by the close of autumn, there were 930 companies with a main market listing 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 modest giveaway on the levy on stock transactions is just one element for issuers and investors. Yet, it would still be politically useful if the flotation activity gathers pace in tandem. Progress is crucial – and needs to last longer than a brief half-year.