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While not a flood following a dry spell, however the weather improved for IPOs in London during the past year. H1 was exceptionally dry as President Trump's tariff agenda upset everything: IPO proceeds were the lowest in a difficult period that started 2022. Yet data show a notable pick-up in activity in the second half, though still far short the levels of the previous peak.

Relief for the Market and Treasury

This uptick will have come as a relief for each of the LSE and the Treasury. For the exchange, the scarcity of new listings – compared with capital raises by existing companies – has proved problematic in recent years, particularly after London lost the high-profile listing of technology firm Arm Holdings in 2023. At the same time, the finance chief is advocating for the joys of investing in stocks, a task that is simpler when there is a steady buzz of new arrivals.

The Newcomers

Few of 2025's newcomers are widely recognized brands. The largest IPO was Texas-based data centre real estate group Fermi – which opted for a dual listing with the American tech market. More familiar UK names included the £1.2bn tinned tuna maker Princes Group, which generated £400m, and the specialist lender Shawbrook.

"The activity this year is a clear indicator of things to come, with a host of businesses actively preparing for a listing in London in 2026," comments exchange CEO Julia Hoggett.

This assessment is likely accurate. Share prices are elevated, which incentivizes founders to monetize their stakes. Additionally, the merry-go-round of buyout firms selling assets to each other may have peaked; the public markets, the original exit route, looks relatively more attractive.

Prospects for Next Year

The most important potential listing of 2026 is anticipated to be Norwegian Visma, one of Europe's biggest tech firms, with 17,500 employees. London first needs to be selected – Stockholm has emerged as a rival – but financial advisors are in place. Visma, backed by UK-based private equity firm Hg Capital, is thought to be more than €20bn, more than enough to enter the FTSE 100.

Other possibilities include:

• Bristol-based veterinary group IVC Evidensia, whose route is clearer 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 likely delay plans, but the London IPO pipeline looks in better shape than it has for years. "There has been assurance slowly return with companies considering listing, who have been encouraged by the activity," notes Brian Hanratty of investment firm Peel Hunt.

Challenges Remain

Yet London is in need of an wave of innovation. During the modest recovery, payments firm Wise disclosed a transfer of its primary listing to the US. Meanwhile, the natural churn from takeovers and delistings kept shrinking the number of public companies; by the close of autumn, 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 finance minister unveiled a temporary tax break for new listings. This small incentive on the levy on share purchases is just one element for issuers and investors. Nevertheless, it would prove advantageous if the flotation activity comes to life concurrently. An improvement is crucial – and needs to last longer than a brief half-year.