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The shift was more a drizzle than a deluge, yet the weather improved for IPOs in London during the course of last year. H1 was exceptionally dry as President Trump's tariff agenda disrupted markets: money raised from new listings hit a low point in a prolonged slump beginning 2022. However statistics indicate a notable pick-up in listings in the second half, albeit still billions away the volumes of the last boom year.

Good News for the Market and Treasury

The modest recovery offers some reassurance for each of the LSE and Chancellor Rachel Reeves. For the LSE, the scarcity of new listings – compared with capital raises by existing companies – has been a source of concern in the past few years, particularly after London failed to land the high-profile listing of technology firm Arm Holdings in 2023. Meanwhile, the finance chief is promoting the advantages of investing in stocks, a endeavor that is more straightforward when there is a constant flow of market entrants.

The Newcomers

Hardly any of 2025's newcomers can be described as widely recognized brands. The largest IPO was Texas-based property firm Fermi – and that was a dual listing with the US Nasdaq exchange. Better-known British companies included the £1.2bn tinned tuna maker Princes Group, which raised £400m, and the specialist lender Shawbrook.

"The activity in 2025 is a clear indicator of things to come, with numerous firms actively preparing for a flotation in London next year," comments LSE chief executive Julia Hoggett.

This assessment is likely accurate. Share prices are elevated, which encourages founders to monetize their stakes. Additionally, the cycle of buyout firms trading portfolio companies may have peaked; the stock market, the original exit route, looks like a better option.

The 2026 Pipeline

A major early IPO of the coming year is anticipated to be Norwegian Visma, one of Europe's biggest tech firms, with 17,500 employees. London is competing to be the venue – Stockholm has been making a late challenge – but financial advisors are already appointed. Visma, backed by UK-based private equity firm Hg Capital, is thought to be more than €20bn, more than enough to join the premier index.

Other possibilities include:

• UK veterinary group IVC Evidensia, whose route is clearer following a regulatory review. It operates 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.

An economic slowdown would likely delay plans, but the London IPO pipeline 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.

Headwinds Persist

However London definitely needs an wave of innovation. Amid the modest recovery, payments firm Wise disclosed a transfer of its primary listing to the US. At the same time, the ongoing attrition 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, down from 972 at the beginning of the year.

Recently, the chancellor proposed a temporary tax break for new listings. This small incentive on the levy on share purchases is likely a secondary factor for companies and their backers. Nevertheless, it would still be politically useful if the flotation activity gathers pace at the same time. Progress is crucial – and must endure longer than six months.