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While not a flood following a dry spell, yet the environment shifted for public offerings in the City during 2025. H1 was exceptionally dry as new US trade policies upset everything: IPO proceeds reached a nadir in a prolonged slump that started 2022. However data indicate a marked improvement in listings in the latter six months, though still billions away the volumes of the last boom year.

Good News for the Market and Treasury

The modest recovery will have come as a relief for both the LSE and Chancellor Rachel Reeves. For the former, the lack of new listings – compared with fundraisings by existing companies – has proved problematic in the past few years, especially after the UK lost the major listing of chip designer Arm Holdings in 2023. Meanwhile, the finance chief is trying to talk up the benefits of long-term equity investment, a endeavor that is simpler when there is a steady buzz of new arrivals.

The Newcomers

Not all of last year's listings are widely recognized brands. The largest IPO was Texas-based data centre real estate group Fermi – which opted for a dual listing with the US Nasdaq exchange. More familiar British companies included the £1.2bn tinned tuna maker Princes Group, which generated £400m, and the financial services firm Shawbrook.

"The momentum this year is very much a sign of future trends, with a host of businesses actively preparing for a flotation in London next year," argues LSE chief executive Julia Hoggett.

This assessment is likely accurate. Share prices are elevated, which encourages founders to realize value. And, the cycle of private equity funds selling assets to each other may have run its course; the public markets, the more traditional venue, looks relatively more attractive.

Prospects for Next Year

A key potential listing of the coming year should be Norwegian Visma, one of the continent's largest software companies, with 17,500 employees. The LSE must still be chosen – Stockholm has emerged as a rival – but investment banking advisers are in place. Visma, backed by UK-based private equity firm Hg Capital, is thought to be around €20bn, easily sufficient to join the premier index.

Other possibilities include:

• UK veterinary group IVC Evidensia, whose route is more defined following a competition watchdog 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.

A market downturn would cool interest, but the schedule of flotations seems more robust than it has for years. "There has been assurance build with companies considering listing, who have been encouraged by the recent deals," observes Brian Hanratty of investment firm Peel Hunt.

Headwinds Persist

Yet London definitely needs an influx of new blood. During the modest recovery, payments firm Wise revealed a move of its main market quote to the US. At the same time, the natural churn from takeovers and delistings further diminished the ranks of public companies; by the close of autumn, there were fewer than a thousand companies with a main market listing in London, a decrease from 972 at the start of the year.

As part of fiscal policy, the finance minister announced a temporary tax break for new listings. This limited relief on the levy on share purchases is just one element for companies and their backers. Nevertheless, it would prove advantageous if the flotation activity gathers pace concurrently. Progress is long awaited – and needs to last longer than a brief half-year.