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It wasn't quite a downpour after the drought, yet the weather changed for IPOs in the UK capital during the course of last year. The first half was exceptionally dry as new US trade policies created uncertainty: money raised from new listings were the lowest in a prolonged slump beginning 2022. But figures reveal a marked improvement in listings in the latter six months, though still well below the heights of the previous peak.

Relief for the Market and Treasury

This uptick is likely a welcome sight for each of the LSE and Chancellor Rachel Reeves. For the exchange, the lack of new listings – compared with fundraisings by existing companies – has been a source of concern in recent years, particularly after the UK lost the high-profile listing of chip designer Arm Holdings in 2023. Meanwhile, the finance chief is trying to talk up the benefits of investing in stocks, a mission that is simpler when there is a constant flow of IPO candidates.

2025's Entrants

Hardly any of last year's listings are widely recognized brands. The biggest listing was Texas-based property firm Fermi – which opted for a dual listing with the American tech market. Better-known British companies included the canned fish producer Princes Group, which generated £400m, and the financial services firm Shawbrook.

"The activity this year is very much a sign of future trends, with many companies actively preparing for a flotation in London next year," comments exchange CEO Julia Hoggett.

She is probably correct. Equity valuations are elevated, which incentivizes 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 like a better option.

Upcoming Candidates

The most important early IPO of 2026 is anticipated to be Oslo-based Visma, one of Europe's biggest tech firms, with 17,500 employees. London must still be chosen – Sweden's market has entered the fray – but financial advisors are already appointed. Visma, backed by British private equity firm Hg Capital, is estimated to be at least €20bn, easily sufficient to enter the Footsie.

Other possibilities include:

• UK 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 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 UK listing queue seems more robust than it has for years. "There has been confidence gradually grow with companies considering listing, who have been reassured by the activity," says Brian Hanratty of investment firm Peel Hunt.

Headwinds Persist

But London is in need of an wave of innovation. Amid the modest recovery, fintech company Wise revealed a transfer of its primary listing to the US. At the same time, the natural churn from takeovers and delistings further diminished the number of listed firms; by the close of autumn, there were 930 companies with a premium quote in London, down from 972 at the beginning of the year.

As part of fiscal policy, the finance minister unveiled a temporary tax break for new listings. This limited relief on the tax on stock transactions is just one element for issuers and investors. Yet, it would prove advantageous if the IPO market comes to life in tandem. An improvement is crucial – and has to be more than longer than six months.