UK expected to see IPO revival
UK capital markets are set for a considerable revival in IPO activity due to extensive reforms
The landscape of UK capital markets is poised for a significant transformation by 2026, driven by recent trends and regulatory reforms aimed at revitalising the equity markets. According to Paul Airley, ECM Partner at law firm Fladgate, “London equity markets have staged a revival in Q4 2025, posting the strongest year for IPOs since 2021." Notably, this revival followed a period marked by substantial flotations, demergers, moves from AIM to the Main Market, SPAC transactions, dual listings, and a variety of AIM and AQSE IPOs. The global perspective also reflects a positive momentum, with IPO proceeds climbing by more than a fifth compared to 2024.
In 2026, advisers expect this momentum to persist, particularly in sectors such as consumer, financial services, and technology. “This would mark a significant uplift for the London markets as new reforms to boost competitiveness take effect.” These impending reforms include a revamped prospectus and listing regime for Main Market issuers, which promises clearer forward-looking statement protections, simplified follow-on financing, and relaxed rules for significant transactions. Furthermore, international issuers are increasingly leveraging the UK’s secondary listing category, thereby gaining access to UK capital while minimising ongoing obligations.
On AIM, the intended reforms aim to streamline admissions while reducing ongoing regulatory burdens and costs. This is expected to encourage the growth of founder-led and innovative companies while fostering an environment conducive to new listings. Additional factors such as a downward trend in interest rates, a three-year stamp duty holiday on Main Market IPO shares, increased retail participation, and clearer regulatory stances on crypto-related businesses are likely to further bolster confidence in UK IPOs and equity financing.
Finally, stronger valuations for listed businesses may influence company decisions towards pursuing IPOs instead of trade sales. This shift stands to dampen the current high levels of public M&A activity, which have been partly driven by the UK listed companies trading at a discount. As we look towards the future, all signs suggest that the UK capital markets are on track for a notable revival, marking a new chapter in investment opportunities.
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