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While not a flood following a dry spell, yet the weather changed for IPOs in the UK capital during the course of last year. H1 was exceptionally dry as new US trade policies created uncertainty: fundraisings from flotations were the lowest in a prolonged slump dating back to 2022. But data show a marked improvement in listings in the H2, albeit still well below the volumes of the previous peak.

A Welcome Development for the LSE and Rachel Reeves

This uptick is likely a welcome sight for each of the LSE and Chancellor Rachel Reeves. For the exchange, the lack of new listings – as opposed to fundraisings by existing companies – has proved problematic in recent years, especially after the UK failed to land the high-profile listing of technology firm Arm Holdings in 2023. Concurrently, the finance chief is advocating for the benefits of investing in stocks, a endeavor that is more straightforward when there is a steady buzz of market entrants.

The Newcomers

Few of 2025's newcomers qualify as household names. The most significant debut was US property firm Fermi – which opted for a dual listing with the US Nasdaq exchange. More familiar UK names included the canned fish producer Princes Group, which generated £400m, and the financial services firm Shawbrook.

"The momentum this year is strong evidence of things to come, with numerous firms gearing up for a IPO in London in 2026," states LSE chief executive Julia Hoggett.

Her view seems justified. Share prices are elevated, which encourages founders to cash in. And, the merry-go-round of buyout firms selling assets to each other may have reached its natural limit; the stock market, the original exit route, looks like a better option.

Upcoming Candidates

A key potential listing of 2026 is anticipated to be Norwegian Visma, one of Europe's biggest software companies, with 17,500 employees. London is competing to be the venue – Stockholm has been making a late challenge – but underwriters are in place. Visma, backed by UK-based private equity firm Hg Capital, is estimated to be more than €20bn, more than enough to join the FTSE 100.

Additional candidates include:

• UK veterinary group IVC Evidensia, whose route is clearer following a regulatory review. It operates 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.

An economic slowdown would probably stall progress, but the London IPO pipeline looks in better shape than it has since the last boom. "We have seen assurance build with IPO issuers, who have been encouraged by the recent deals," says Brian Hanratty of broker Peel Hunt.

Challenges Remain

Yet London is in need of an wave of innovation. Amid the modest recovery, payments firm Wise revealed a transfer of its primary listing to the US. At the same time, the natural churn from M&A and departures further diminished the ranks of public companies; by the close of autumn, there were 930 companies with a premium quote in London, a decrease from 972 at the beginning of the year.

In her November budget, the chancellor announced a temporary tax break for new listings. This modest giveaway on the tax on stock transactions is likely a secondary factor for issuers and investors. But, it would still be advantageous if the flotation activity gathers pace in tandem. Progress is long awaited – and needs to last longer than a brief half-year.