Investment bankers are looking to 2026 as a potential turning point for London’s struggling initial public offering (IPO) market, betting that a small number of large, high-profile listings could help restore confidence after another disappointing year for new listings.
Hopes of a revival in 2025 faded as market volatility linked to US President Donald Trump’s tariff policies eroded boardroom confidence globally.
Several companies paused or abandoned listing plans, while others, including fintech group Wise, shifted their primary listings to New York.
The slowdown intensified concerns over the long-term competitiveness of the London Stock Exchange (LSE).
A difficult backdrop for London IPOs
The scale of London’s challenges was underscored by its weak fundraising performance.
In the first nine months of 2025, the LSE raised less money from new listings than some smaller international exchanges, reflecting a lack of sizeable IPOs.
Although sentiment improved slightly toward the end of the year, overall activity remained muted.
These included listings from British bank Shawbrook, LED face mask maker Beauty Tech, and tinned tuna seller Princes Group.
Data centre developer Fermi and industrial group Metlen opted for dual listings, while the Magnum Ice Cream Company, spun out of Unilever, chose Amsterdam as its primary venue while retaining a UK listing.
In total, there were 22 London IPOs in 2025, raising £2.1bn, according to LSE data to December 22.
That marked an improvement on 2024, when 16 IPOs raised £766mn, but activity remained well below historical norms.
Advisers argue that London’s problem has been a lack of breadth and depth in supply.
Richard Fagan, head of origination at Shore Capital, said in a FT report that he expects more high-quality listings and favourable pricing conditions for sellers in 2026.
Visma and the search for a catalyst
Bankers believe a successful large IPO could act as a catalyst, encouraging other companies to follow.
One of the most closely watched candidates is Visma, the Norwegian software group backed by Hg Capital, which is considering a listing valued at around €19 billion as early as the first half of 2026.
Visma has chosen London over Amsterdam, a decision advisers say would be symbolic for the UK market.
The deal would test whether recent regulatory reforms and changes to index rules—such as allowing euro-reporting companies to join the FTSE 100 are making London more attractive.
Charlie Walker, deputy chief executive of the LSE, said that before the recent reforms, the listing rules had acted as obstacles to new listings, with different provisions posing challenges for different companies rather than a single, clear barrier.
Beyond Visma, advisers are tracking a long list of potential IPO candidates across fintech, insurance, and other sectors, though competition from New York remains intense.
Fintech, consumer, and overseas contenders
Several UK-based fintechs have been linked to IPOs, but many remain undecided on timing and venue.
Revolut is widely expected to stay private beyond 2026.
Santander-owned payments group Ebury has paused a London listing process but could revisit it, while Monzo’s plans have been complicated by management changes and shareholder tensions, pushing any listing into late 2026 or beyond.
Starling Bank is weighing a debut but may opt for a dual New York and London listing.
Other potential candidates include credit checker ClearScore, payments firm Zilch, and payments reader group SumUp, though many are still at an early stage.
In insurance, broker Howden is considering a London listing that could value it at about £23bn, though recent US acquisitions could tilt it toward New York.
Cyber insurance group CFC is working on a potential £5bn listing.
Overseas groups are also in focus.
CK Hutchison is considering listings for its AS Watson health and beauty business and its telecoms unit, which includes the Three mobile brand.
London is seen as a stronger contender for the telecoms listing.
Elsewhere, vet chain IVC Evidensia, bookseller Waterstones, travel firm LoveHolidays, Autoglass owner Belron, and Uzbek miner Navoi Mining and Metallurgical Company are among those weighing London debuts.
Bankers argue that if a handful of these deals succeed, they could help restore momentum to a market that has struggled to compete globally, making 2026 a critical year for the City’s IPO ambitions.
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