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It wasn't quite a downpour after the drought, but the climate changed for stock market listings in the City during the course of last year. H1 was properly parched as geopolitical tensions created uncertainty: fundraisings from flotations were the lowest in a miserable run that started 2022. However figures show a notable pick-up in activity in the second half, even if still billions away the heights of the previous peak.

Good News for the LSE and Rachel Reeves

The modest recovery offers some reassurance for each of the London Stock Exchange and the Treasury. For the LSE, the dearth of company debuts – as opposed to fundraisings by existing companies – has become an embarrassment in recent years, particularly after the UK lost the major listing of chip designer Arm Holdings in 2023. At the same time, the chancellor is advocating for the advantages of investing in stocks, a endeavor that is easier when there is a steady buzz of new arrivals.

2025's Entrants

Hardly any of last year's listings can be described as widely recognized brands. The largest IPO was Texas-based property firm Fermi – which opted for a simultaneous listing with the American tech market. Better-known British companies included the £1.2bn tinned tuna maker Princes Group, which secured £400m, and the financial services firm Shawbrook.

"The pipeline in 2025 is very much a sign of future trends, with many companies gearing up for a flotation in London next year," states LSE chief executive Julia Hoggett.

This assessment is likely accurate. Stock markets are strong, which motivates shareholders to realize value. Additionally, the merry-go-round of private equity funds trading portfolio companies may have peaked; the public markets, the more traditional venue, looks like a better option.

Prospects for Next Year

The most important potential listing of the coming year could be Norwegian Visma, one of the continent's largest tech firms, with thousands of employees. The LSE is competing to be the venue – Stockholm has entered the fray – but underwriters are already appointed. Visma, long-supported by British private equity firm Hg Capital, is estimated to be at least €20bn, easily sufficient to qualify for the Footsie.

Additional candidates include:

• UK veterinary group IVC Evidensia, whose route is clearer following a competition watchdog review. It operates thousands of clinics in 19 countries.
• The RAC roadside recovery business (and possibly the AA as well).
• The combined Waterstones and Barnes & Noble bookshop chains.
• Fintech payments platform Ebury and online travel agent Loveholidays.

A shift in sentiment would likely delay plans, but the schedule of flotations appears healthier than it has since the last boom. "We have seen assurance slowly return with IPO issuers, who have been heartened by the activity," observes Brian Hanratty of investment firm Peel Hunt.

Challenges Remain

However London still requires an injection of freshness. Amid the modest recovery, payments firm Wise disclosed a move of its main market quote to the US. At the same time, the natural churn from M&A and departures further diminished the total of listed firms; by the end of November, there were fewer than a thousand companies with a main market listing in London, down from 972 at the beginning of the year.

Recently, the finance minister proposed a three-year post-IPO stamp duty holiday. This limited relief on the tax on stock transactions is likely a secondary factor for companies and their backers. Yet, it would still be politically useful if the flotation activity accelerates in tandem. An improvement is crucial – and must endure longer than a brief half-year.