IPOs are stirring, but is the market ready to wake up?

Those listening closely will have already heard London’s IPO market beginning to stir. Nothing too loud, but whispers and signs. Among the handful of companies who have announced plans to list is Essex-based bank, Shawbrook, which could deliver one of the largest floats of the year. Reportedly targeting a valuation around £2 billion, this listing would mark a significant moment for both the company and the London market – and having already successfully IPO-ed in 2015, though only staying public for two years, perhaps the familiarity will work in Shawbrook’s favour. 

While others are also making moves, there has been no boom, no cacophony – yet. The broader context remains challenging and despite IPO fundraising in London hitting a 30-year low in the first half of the year, the market continues to trail behind global peers. Still, after a tough few years, the tone and the tide are starting to shift. Confident chatter is starting to return, with more activity, more conversations, more testing of the waters – all being moved along by (if not predicated on) regulatory reform. 

Though no silver bullet, proposed FCA changes aimed at reviving the floundering UK market are a step in the right direction. From merging premium and standard listing segments, to streamlining disclosure obligations and relaxing shareholder voting requirements, the appetite is there. This is definitely encouraging. 

Even with these reforms, the environment will continue to be demanding for companies looking to list – investors are cautious, and competition from other markets remains strong. However, the pipeline is growing, and while sentiment remains mixed, the market is no longer flatlining. There is opportunity, and London is starting to look viable once again. 

From a communications perspective, this is a moment that calls for precision. Companies should be clear on their story, strategy, and the why of it all – why London makes sense and why now. The framing matters as much as the fundamentals in a market that’s still rebuilding its confidence. The ability to articulate a compelling narrative will be key to the next generation of successful listings; it is important that the numbers have context.

UK funds now hold just 4% of their assets in UK equities, and that’s down from 40% in the 1990s. Suffice to say, this is a structural shift that cannot be reversed overnight but will need to be chipped away at slowly with a series of successful listings. When a company like Shawbrook makes a strong case for London being the right place for them to list, a little trust in the market is rebuilt.

So, a resurgence? Not quite. But as the market starts to move with more intent and momentum, London might soon be able to shift hesitation into quiet, steady progress.