🔗 Share this article A Modest Rebound in London Initial Public Offerings Brings Comfort, However Investor Trust Returns At a Cautious Pace. The shift was more a drizzle than a deluge, but the climate changed for public offerings in London during the past year. The first half was exceptionally dry as geopolitical tensions upset everything: money raised from new listings hit a low point in a difficult period that started 2022. But statistics indicate a marked improvement in activity in the H2, though still well below the volumes of the previous peak. A Welcome Development for the Exchange and the Chancellor The modest recovery is likely a welcome sight for each of the LSE and the Treasury. For the LSE, the lack of fresh IPOs – as opposed to capital raises by already listed companies – has proved problematic in the past few years, especially after the UK lost the major listing of technology firm Arm Holdings in 2023. At the same time, Reeves is trying to talk up the joys of long-term equity investment, a endeavor that is easier when there is a regular stream of new arrivals. The Newcomers Hardly any of 2025's newcomers qualify as widely recognized brands. The biggest listing was US property firm Fermi – and that was a dual listing with the US Nasdaq exchange. More familiar UK names included the £1.2bn tinned tuna maker Princes Group, which raised £400m, and the specialist lender Shawbrook. "The momentum in 2025 is strong evidence of things to come, with numerous firms gearing up for a flotation in London next year," argues LSE chief executive Julia Hoggett. This assessment is likely accurate. Share prices are elevated, which motivates owners to monetize their stakes. Furthermore, the cycle of private equity funds selling assets to each other may have run its course; the public markets, the original exit route, looks relatively more attractive. Prospects for Next Year The most important potential listing of 2026 could be Norwegian Visma, one of Europe's biggest tech firms, with thousands of employees. London first needs to be selected – Stockholm has emerged as a rival – but investment banking advisers are in place. Visma, long-supported by British private equity firm Hg Capital, is estimated to be at least €20bn, easily sufficient to join the FTSE 100. Additional candidates 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 shift in sentiment would likely delay plans, but the UK listing queue looks in better shape than it has in a long time. "We have seen assurance slowly return with IPO issuers, who have been encouraged by the market momentum," notes Brian Hanratty of broker Peel Hunt. The Need for Freshness But London is in need of an influx of new blood. Amid the mini-pick-up, payments firm Wise revealed a move of its primary listing to the US. Meanwhile, the ongoing attrition from takeovers and delistings further diminished the number of public companies; by the end of November, there were 930 companies with a premium quote in London, down from 972 at the start of the year. As part of fiscal policy, the finance minister proposed a three-year post-IPO stamp duty holiday. This limited relief on the tax on share purchases is just one element for companies and their backers. Nevertheless, it would prove advantageous if the flotation activity accelerates concurrently. A sustained recovery is long awaited – and must endure longer than six months.