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The shift was more a drizzle than a deluge, but the environment changed for IPOs in London during 2025. The first half was properly parched as new US trade policies created uncertainty: money raised from new listings reached a nadir in a prolonged slump beginning 2022. Yet data reveal a marked improvement in activity in the latter six months, albeit still far short the levels of the previous peak.

Relief for the LSE and Rachel Reeves

This uptick is likely a welcome sight for each of the UK's main market and the Treasury. For the LSE, the lack of new listings – rather than fundraisings by existing companies – has been a source of concern in the past few years, especially after the UK lost the high-profile listing of chip designer Arm Holdings in 2023. At the same time, Reeves is trying to talk up the joys of investing in stocks, a task that is more straightforward when there is a steady buzz of IPO candidates.

Recent Listings

Not all of 2025's newcomers are widely recognized brands. The largest IPO was US property firm Fermi – and that was a simultaneous listing with the US Nasdaq exchange. More familiar British companies included the £1.2bn tinned tuna maker Princes Group, which secured £400m, and the specialist lender Shawbrook.

"The activity in 2025 is strong evidence of things to come, with numerous firms in advanced preparations for a flotation in London in 2026," states LSE chief executive Julia Hoggett.

Her view seems justified. Stock markets are strong, which incentivizes founders to cash in. Additionally, the cycle of private equity funds trading portfolio companies may have reached its natural limit; the stock market, the original exit route, looks increasingly appealing.

Prospects for Next Year

The most important early IPO of 2026 could be Norwegian Visma, one of the continent's largest tech firms, with 17,500 employees. The LSE first needs to be selected – Sweden's market has emerged as a rival – but financial advisors are already appointed. Visma, long-supported by British private equity firm Hg Capital, is thought to be at least €20bn, easily sufficient to join the Footsie.

Other possibilities include:

• UK veterinary group IVC Evidensia, whose route is clearer following a competition watchdog review. It operates 2,700 sites in 19 countries.
• The RAC roadside recovery business (and possibly 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 likely delay plans, but the schedule of flotations appears healthier than it has for years. "We have seen assurance slowly return with companies considering listing, who have been heartened by the recent deals," observes Brian Hanratty of investment firm Peel Hunt.

Headwinds Persist

However London is in need of an influx of new blood. During the mini-pick-up, fintech company Wise announced a switch of its primary listing to the US. At the same time, the ongoing attrition from takeovers and delistings further diminished the ranks of listed firms; by the end of November, there were 930 companies with a main market listing in London, a decrease from 972 at the beginning of the year.

As part of fiscal policy, the finance minister proposed a three-year post-IPO stamp duty holiday. This small incentive on the tax on stock transactions is probably only a minor consideration for companies and their backers. Yet, it would still be politically useful if the flotation activity accelerates in tandem. Progress is long awaited – and must endure longer than a brief half-year.