Could 2025 See UK IPO’s Revived?

2025 could potentially mark a revival for the London Stock Exchange as a series of initial public offerings (IPOs) are anticipated, offering a possible boost to the UK's financial markets. This comes after a challenging period for the LSE, which saw fewer than 20 companies listing on the main market in London last year. This was the lowest figure since the global financial crisis, despite the FTSE 100 reaching record highs.

The recent trend has seen some companies, including Arm Holdings, choosing to list in New York over London. However, with the FTSE starting 2025 strongly, with the 100 index gaining 4.3%, an improvement on the S&P 500's 2.81%, potential IPOs could help shine a light back on UK markets.

Among the most anticipated IPOs is Shein, a company rumoured to be seeking to list at a £50 billion valuation. Other companies set to explore IPOs include eToro, Metlen Energy & Metals, Brewdog, and Huel. However, Shein's IPO is not without controversy due to accusations surrounding its sourcing of materials.

Notable companies like Monzo and the Unilever Ice Cream division are also considering IPOs. Unilever's possible listing of its ice cream business is by no means confirmed for the UK, if it does list. The firm is said to be considering a range of listing locations from London, Amsterdam, and the New York Stock Exchange.

The recovery of London’s financial markets will take time, and with a perceived valuation gap between UK and U.S listed firms, there is likely not going to be an immediate shift in priority listings for the time being. Nevertheless, the planned IPOs for 2025 could provide a much-needed boost to the UK IPO market.