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While not a flood following a dry spell, however the weather shifted for public offerings in the City during the course of last year. The first half was exceptionally dry as President Trump's tariff agenda created uncertainty: fundraisings from flotations hit a low point in a prolonged slump beginning 2022. But statistics show a notable pick-up in deal flow in the H2, even if still well below the levels of 2021.

A Welcome Development for the LSE and Rachel Reeves

This uptick offers some reassurance for both the London Stock Exchange and the Treasury. For the LSE, the dearth of new listings – compared with capital raises by existing companies – has proved problematic in the past few years, especially after London lost the high-profile listing of chip designer Arm Holdings in 2023. Meanwhile, the finance chief is promoting the benefits of long-term equity investment, a endeavor that is more straightforward when there is a regular stream of IPO candidates.

Recent Listings

Hardly any of 2025's newcomers can be described as household names. The most significant debut was Texas-based data centre real estate group Fermi – which opted for a dual listing with the American tech market. More familiar UK names included the £1.2bn tinned tuna maker Princes Group, which secured £400m, and the financial services firm Shawbrook.

"The activity this year is very much a sign of what is to come, with many companies actively preparing for a IPO in London next year," states exchange CEO Julia Hoggett.

She is probably correct. Share prices are elevated, which encourages founders to cash in. And, the merry-go-round of private equity funds selling assets to each other may have run its course; the stock market, the more traditional venue, looks relatively more attractive.

The 2026 Pipeline

The most important early IPO of the coming year is anticipated to be Oslo-based Visma, one of Europe's biggest software companies, with 17,500 employees. The LSE must still be chosen – Sweden's market has been making a late challenge – but financial advisors are already appointed. Visma, long-supported by British private equity firm Hg Capital, is valued at at least €20bn, more than enough to qualify for the premier index.

Other possibilities include:

• Bristol-based veterinary group IVC Evidensia, whose route is more defined 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.

An economic slowdown would cool interest, but the London IPO pipeline seems more robust than it has in a long time. "We have seen assurance build with companies considering listing, who have been encouraged by the recent deals," notes Brian Hanratty of broker Peel Hunt.

Challenges Remain

However London is in need of an influx of new blood. During the modest recovery, fintech company Wise announced a move of its primary listing to the US. At the same time, the natural churn from takeovers and delistings continued to reduce the number of public companies; by the close of autumn, there were 930 companies with a main market listing in London, a decrease from 972 at the beginning of the year.

Recently, the finance minister proposed a temporary tax break for new listings. This modest giveaway on the tax on stock transactions is likely a secondary factor for companies and their backers. Yet, it would prove advantageous if the IPO market comes to life at the same time. A sustained recovery is crucial – and has to be more than longer than a brief half-year.