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It wasn't quite a downpour after the drought, but the weather improved for IPOs in the UK capital during the course of last year. The first half was properly parched as President Trump's tariff agenda created uncertainty: IPO proceeds were the lowest in a difficult period that started 2022. However figures indicate a marked improvement in activity in the latter six months, even if still far short the levels of the last boom year.

Relief for the Exchange and the Chancellor

The modest recovery offers some reassurance for both the London Stock Exchange and the finance minister. For the exchange, the dearth of company debuts – compared with fundraisings by already listed companies – has been a source of concern in recent years, particularly after London failed to land the major listing of chip designer Arm Holdings in 2023. Meanwhile, the finance chief is advocating for the benefits of investing in stocks, a endeavor that is easier when there is a regular stream of market entrants.

2025's Entrants

Not all of the recent entrants are household names. The largest IPO was US property firm Fermi – which opted for a simultaneous listing with the US Nasdaq exchange. More familiar UK names included the canned fish producer Princes Group, which generated £400m, and the specialist lender Shawbrook.

"The pipeline this year is very much a sign of things to come, with numerous firms gearing up for a flotation in London next year," comments LSE chief executive Julia Hoggett.

Her view seems justified. Share prices are strong, which motivates founders to realize value. Furthermore, the cycle of buyout firms trading portfolio companies may have peaked; the stock market, the original exit route, looks like a better option.

Prospects for Next Year

A key potential listing of the coming year could be Oslo-based Visma, one of Europe's biggest software companies, with thousands of employees. The LSE is competing to be the venue – Sweden's market has entered the fray – but underwriters are in place. Visma, backed by British private equity firm Hg Capital, is valued at at least €20bn, easily sufficient to qualify for the Footsie.

Other possibilities include:

• UK 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 potentially the AA too).
• The combined Waterstones and Barnes & Noble bookshop chains.
• Fintech payments platform Ebury and online travel agent Loveholidays.

An economic slowdown would cool interest, but the UK listing queue seems more robust than it has for years. "There has been assurance gradually grow with companies considering listing, who have been reassured by the market momentum," notes Brian Hanratty of investment firm Peel Hunt.

Headwinds Persist

Yet London still requires an influx of new blood. Amid the modest recovery, payments firm Wise announced a move of its main market quote to the US. Meanwhile, the ongoing attrition from takeovers and delistings continued to reduce the number of listed firms; by the end of November, there were 930 companies with a premium quote in London, a decrease from 972 at the beginning of the year.

Recently, the chancellor announced a three-year post-IPO stamp duty holiday. This limited relief on the tax on share purchases is probably only a minor consideration for issuers and investors. Nevertheless, it would prove politically useful if the flotation activity accelerates concurrently. A sustained recovery is overdue – and needs to last longer than a brief half-year.