In a recent City A.M. column, City Minister Lucy Rigby struck an optimistic note, declaring that “London is back in business” and that the “City’s spark is back. The article comes off the back of a steady stream of London IPO announcements that have brought a welcome buzz to the City.
Beauty Tech Group made a strong trading debut earlier this month, while digital lender Shawbrook has unveiled plans to go public in what could be London’s biggest IPO of the year.
Fermi America also made headlines as the first company this century to achieve a dual LSE–NASDAQ listing, a sign that reform is starting to bite.
And the London IPO pipeline may not stop there. Boots and Loveholidays are both reportedly weighing their own debuts, while in fintechland, City A.M.’s Sam Norman reports that Zilch has promised to bring something “never seen before” to the market.
All of this positive news is welcome relief from the negativity that has surrounded the City this year.
The real question is whether the tide is genuinely turning, or if London’s latest wave of optimism will ebb as quickly as it arrived.
Given that the UK IPO market raised only about $160 million in the first half of 2025, its weakest level since 1995, the only way is up, right?
Reform, revival and reality checks
Policymakers have been busy trying to make London a more attractive place to list.
The Chancellor’s Mansion House reforms and the FCA’s new simplified listing regime are aimed at getting more firms back onto the market.
The FCA’s new prospectus regime streamlines disclosures, and the updated UK Listing Rules allow more flexible dual-/multiple-class share structures, putting London on a competitive footing with other major international listing venues, particularly those in the US and the EU.
The Treasury is also considering a three-year stamp duty exemption on trading newly listed shares in the Autumn Budget, though this has not yet been confirmed.
Together, these changes show a genuine effort to modernise how capital flows through the City. But regulatory reform takes time to show results, and rules alone won’t bring a flood of new London IPOs.
For many companies, especially in tech and fintech, the decision to go public still depends on realistic valuations, investor appetite and the quality of analyst coverage.
The case for staying private
While public markets are slowly showing signs of life, private markets have been thriving. Record levels of private equity and venture capital funding mean companies can now raise billions and expand globally without ever going public.
Recent data suggests the UK is punching above its weight in converting early-stage VC investment into unicorns.
According to analysis by IMS Digital Ventures, the UK has created nearly three times as many unicorns per $1 billion of early-stage funding as the US over the past decade. This shows the fertile ground for innovation and how efficient the UK ecosystem has become for backing high-growth firms.
Private ownership gives founders more freedom to grow at their own pace, away from the pressure of quarterly reporting and short-term market reactions. It also allows management teams to keep tighter control of valuations and strategy.
The UK’s new Pisces rules mark a significant shift in how private markets operate. They create a framework for regulated intermittent trading of private company shares, giving firms a way to offer investors liquidity without going through a full IPO. It’s part of a wider effort to make the transition from private to public capital smoother and more transparent, and is a recognition that the way capital moves is changing, and that London is adapting to meet it.
More capital will flow into private assets. Pension funds are being encouraged to invest more in UK businesses through the Mansion House Accord. Signatories have pledged to allocate 10% of their DC default funds into private markets by 2030, with at least 5% of that earmarked for UK private assets.
At the same time, retail participation in private assets is beginning to grow, helped by new digital investment platforms and regulatory shifts. Hargreaves Lansdown recently partnered with Schroders to open up access to private market investments for the first time via Self-Invested Personal Pensions (SIPPs). If this trend catches on, it could unlock a fresh wave of capital into unlisted companies.
Rather than seeing the rise of private markets as a threat to public markets, London should treat it as a sign of strength and seize the opportunity.
Doubling down on both
London has the chance to lead in both worlds. It can become the home of traditional listings and the global centre for private capital and innovation.
By continuing to modernise the listing environment while strengthening its position as a global centre for private market activity, the UK can become the complete home for capital formation, from early-stage venture funding to major institutional IPOs.
Getting the balance right is essential.
With the Autumn Budget fast approaching, all eyes will be on the Chancellor to see whether there is anything meaningful for the markets. There’s already talk of a possible stamp duty exemption on new listings; let’s hope there are further measures aimed at unlocking investment in domestic public and private assets.
A supportive Budget could help sustain the momentum. If it falls flat, optimism may quickly fade.
According to the latest Global Financial Centres Index, London is snapping at New York’s heels. It’s just a few points shy of reclaiming the top spot after taking a bite out of the Big Apple.
By building on this wave of listings and confidence and keeping public and private markets investment flowing, the City will secure its role as the world’s most dynamic financial ecosystem – a place where companies can grow, raise capital and stay for the long term.
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