Upcoming floats to boost London after tough 2024
- Analysts at consulting giant EY say there are signs of ‘cautious optimism’
- ‘Robust pipeline of deals’ that could trigger a ‘recovery of activity’
- The top upcoming entry is fast fashion giant Shein
The London Stock Exchange is expected to get a much-needed boost in the first half of this year as companies go public following a stock market drought in 2024.
Analysts at consultancy giant EY said there were signs of “cautious optimism” for 2025 thanks to a “robust pipeline of deals” that could trigger a “recovery in activity”.
A major upcoming listing is fast fashion giant Shein, which aims to float on the UK stock market in the first three months of the year and is expected to fetch a valuation of around £50 billion.
Scott McCubbin, EY’s UKI IPO leader, said: ‘A stabilized post-election domestic policy environment, a robust deal pipeline and listing reforms create opportunities to restore London’s competitiveness.
‘While London faces strong competition from other financial centres, its unique strengths – including a global reputation for financial expertise – remain competitive advantages.’
The analysis will provide relief to stock market bosses after the LSE was hit by a lack of listings and the defection of several companies to other exchanges.
Boost: The analysis will provide relief to stock market bosses after the LSE was hit by a lack of listings and the defection of several companies to other exchanges
EY data shows that 18 companies made their debut in London last year, the fewest since EY started keeping records in 2010. Eight of these took place in the last three months of 2024, including the film production group Canal+.
The Paddington maker’s December debut, which raised £2.6 billion, was the biggest IPO on the LSE since 2022. Shares have since fallen almost 30 per cent from their listing price of 290p.
But one bright spot is that while the number of mentions dropped, the amount they raised soared.
EY found that £3.4 billion was raised from London listings in 2024, up from £954 million from 23 companies the year before.
But concerns about attracting business remain as 88 companies have delisted or moved their main listing out of London.
Last week, several of the city’s top brokers urged Chancellor Rachel Reeves to scrap stamp duty tax on UK shares, warning it would deter investment.
Paul Geddes, chief executive of asset manager Evelyn Partners, told the Mail last week that the abolition of stamp duty, combined with other reforms, could “reignite interest in the UK market”.
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