London Reforms Set to Spark IPO Surge After Historic Slump, Says deVere

Why It Matters

The reforms could reverse a decade‑long erosion of UK listed companies, attracting capital and supporting innovation, while narrowing the valuation gap with US markets.

Key Takeaways

• LSE listed only nine companies last year
• IPO fundraising fell to £160m H1 2025
• New Public Offers regime replaces EU prospectus rules
• Simplified rules aim to lower issuance costs
• DeVere expects gradual, not immediate, IPO rebound

Pulse Analysis

London’s IPO market has been in freefall for years, with the London Stock Exchange seeing just nine new listings in the past twelve months and first‑half 2025 fundraising hitting a three‑decade low of £160 million. This contraction reflects broader structural issues, including higher regulatory burdens, thinner liquidity and a persistent valuation discount versus U.S. exchanges. As global capital gravitates toward New York and emerging hubs, the UK’s diminished listing pipeline threatens its status as a premier financial centre and limits funding avenues for domestic innovators.

The newly unveiled Public Offers and Admissions to Trading regime scrapes away much of the EU‑derived prospectus complexity, streamlining the admission process for both equity and debt issuances. By reducing disclosure requirements and accelerating timelines, the reforms lower the cost of capital for companies, particularly in fast‑moving sectors such as artificial intelligence, fintech and clean energy. For issuers, the lighter regulatory touch translates into faster market access and improved pricing dynamics, while investors benefit from clearer, more concise offering documents.

While the regulatory overhaul removes a key barrier, deVere cautions that market confidence, macro‑economic conditions and the lingering valuation gap will dictate the pace of revival. A phased rebound is expected as pipelines refill and investors regain trust. If the reforms succeed in aligning UK listing costs with global peers, London could re‑emerge as a magnet for high‑growth firms, bolstering domestic capital formation and reinforcing the City’s role in the global financial ecosystem.