In the UK, IPOs have drastically reduced in recent years – with only 17 companies listing publicly in 2024. A lack of IPOs is specifically problematic as it represents a reduction in companies’ willingness to grow and raise capital in the UK. Subsequently, the UK invites fewer investment opportunities and elicits a diminished global financial reputation.
Domestically, investors are increasingly showing preferences for private capital, which has shown consistently strong returns in recent years. Conversely, companies are discouraged from listing due to heavy disclosure requirements and public scrutiny, alongside the pressures of quarterly earnings cycles. Further discouragement stems from market volatility and geopolitical tensions – making IPOs appear riskier.
Internationally, companies are continuously choosing to list overseas for more favourable market conditions – such as more flexible share structures, investor demand, and regulatory ease. Most recently, UK-based fintech company WISE chose to move its primary listing to the US. Fashion company Shein has also recently pursued an IPO in Hong Kong, after previously exploring London, where it faced regulatory hurdles. The UK reported a 98% fall in IPO fundraising from 2021 to 2024, which is partially attributable to this significant competition overseas.
In response, the Labour Government has established a listing taskforce, similar to models seen in Singapore, to encourage more UK listings. The taskforce is accompanied by a concierge service, which will specifically support companies exploring the UK as a listing destination. In July, the new Public Offers and Admissions to Trading regime was finalised, effective from 19 January 2026. It seeks to significantly streamline the IPO regulatory process and enhance retail participation for investors.
Further government introductions include PISCES – the Private Intermittent Securities and Capital Exchange System. The ambitious new system provides for the intermittent, secondary trading of shares in private or unlisted companies. It is hoped that PISCES will act as a bridge between a company being private and listing publicly, by requiring lighter disclosures. If successful, it could encourage more companies to stay and grow in the UK, thus eventually increasing IPOs. However, concerns remain over PISCES’ lighter regulatory approach, which, whilst intended to attract activity, risks compromising the market’s integrity by providing fewer protections for investors.
Ultimately, it is uncertain whether these measures alone will be enough to stimulate an increase in UK IPOs. Nonetheless, the FT reports that UK law firms and consultants are beginning to recruit IPO specialists in expectation of a market bounceback, signalling partial optimism of a revitalisation of UK public markets.
Written by: Steven Collingham
Sources – FT, Guardian, PitchBook, Latham & Watkins LLP, Slaughter and May
