London IPO market looks to bounce back with prominent listings in 2025.
The London Stock Exchange will potentially rebound in 2025 following a difficult 2024, where IPO activity hit its lowest levels since the financial crisis. A range of high-profile companies from diverse sectors is considering listing in London. This signals renewed investor interest and government efforts to reinvigorate the UK’s capital markets.
Fast-fashion giant Shein is backed by General Atlantic, Tiger Global Management, and Sequoia Capital and valued at $66bn in 2022. It has filed confidentially with the Financial Conduct Authority for a London IPO.
After abandoning US listing plans due to political concerns, Shein may seek an exemption from listing rules requiring 10% of shares to be sold to the public.
Digital bank Monzo, backed by Coatue and Capital G, has also hinted at potential London IPOs. Monzo is valued at £4.5bn and achieved profitability in 2024. Moreover, it recently appointed a CFO with IPO expertise.
Craft beer brand BrewDog, with a valuation of £1.8bn, has expressed interest in a London IPO. However, it is also considering New York. Private equity firm TSG Consumer Partners bought a 22% stake in BrewDog in 2017 for around £213m. Nonetheless, founder James Watt remains a significant shareholder, and the company has yet to start a formal process.
In addition, insurance specialist Inigo, consumer credit firm NewDay, and bookseller Waterstones are among other companies evaluating IPO options. These businesses, with valuations ranging from £1.7bn to £2bn, highlight the breadth of companies considering public listings in the UK.
The LSE’s struggles include low liquidity, cheap valuations compared to New York, and competition from global financial hubs. Yet, the return of high-profile IPOs could reverse this trend, supported by government efforts to boost London’s attractiveness as a listing venue.
The events of 2025 will be critical in determining whether London can reclaim its status as a preferred destination for IPOs, offering a litmus test for investor confidence and the strength of the UK’s capital markets.
Source: Financial News
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