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The shift was more a drizzle than a deluge, yet the weather improved for IPOs in the City during the course of last year. H1 was exceptionally dry as President Trump's tariff agenda upset everything: money raised from new listings hit a low point in a difficult period dating back to 2022. Yet statistics reveal a marked improvement in deal flow in the latter six months, even if still far short the heights of 2021.

Relief for the Market and Treasury

This uptick offers some reassurance for each of the London Stock Exchange and the finance minister. For the former, the dearth of new listings – rather than capital raises by existing companies – has proved problematic in the past few years, particularly after the UK failed to land the major listing of chip designer Arm Holdings in 2023. At the same time, the finance chief is trying to talk up the advantages of long-term equity investment, a mission that is easier when there is a steady buzz of market entrants.

Recent Listings

Hardly any of last year's listings can be described as household names. The most significant debut was US data centre real estate group Fermi – and that was a simultaneous listing with the US Nasdaq exchange. More familiar British companies included the canned fish producer Princes Group, which secured £400m, and the specialist lender Shawbrook.

"The pipeline this year is a clear indicator of what is to come, with a host of businesses gearing up for a listing in London next year," argues LSE chief executive Julia Hoggett.

She is probably correct. Equity valuations are elevated, which incentivizes owners to monetize their stakes. And, the merry-go-round of buyout firms selling assets to each other may have peaked; the public markets, the more traditional venue, looks relatively more attractive.

The 2026 Pipeline

A key early IPO of the coming year should be Norwegian Visma, one of Europe's biggest tech firms, with thousands of employees. London first needs to be selected – Stockholm has been making a late challenge – but financial advisors are already appointed. Visma, backed by UK-based private equity firm Hg Capital, is valued at at least €20bn, easily sufficient to enter the premier index.

Further prospects include:

• Bristol-based veterinary group IVC Evidensia, whose path to market is clearer following a regulatory review. It runs thousands of clinics 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.

A shift in sentiment would probably stall progress, but the schedule of flotations looks in better shape than it has in a long time. "There has been assurance gradually grow with companies considering listing, who have been encouraged by the recent deals," notes Brian Hanratty of broker Peel Hunt.

The Need for Freshness

But London is in need of an influx of new blood. Amid the modest recovery, payments firm Wise disclosed a switch of its primary listing 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 beginning of the year.

In her November budget, the finance minister 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. But, it would prove politically useful if the flotation activity comes to life at the same time. Progress is overdue – and needs to last longer than six months.