While some firms have shifted their listing to the US, this is often due to strategic reasons, rather than any fundamental weakness in London’s market. For example, plumbing product provider Ferguson and equipment rental firm Ashtead moved to the US because their core operations and investor bases are in the US – not because London was lacking.
Nevertheless, the loss of several high-profile firms in a short period of time has raised concerns.
While these figures look alarming, there are reasons for optimism. The 18 IPOs in 2024 raised almost £3.5bn, compared to less than £1bn in 2023, and the UK might be the unexpected beneficiary of the current increasing macro-economic uncertainty, across both the US and Europe. Many companies are looking at the UK with increasing interest, for its deep capital pools, as well as its political, and potential market stability.
There is no doubt however that the main driver for optimism is the reforms that have been implemented, or are yet to be delivered, to help strengthen London’s appeal as a leading listing venue. Many of the reforms have been years in the making, such as Lord Hill’s Listing Review, which with the support of the UK Capital Markets Industry Taskforce, enabled swift delivery.
Below, we explore these initiatives and their potential impact on capital markets.
Overhauling the UK listing and prospectus rules
In June last year, the Financial Conduct Authority (FCA), the City watchdog, introduced what it called “the biggest changes to the listing regime in over three decades”.
The overhaul simplified the listing process by replacing the current premium and standard listing types with a single category, making it easier for companies to go public.
Other key changes include removing the need for votes on significant or related party transactions and allowing for dual or multiple class share structures, which are popular with founder-led businesses, such as tech companies.
Separately, the FCA is consulting on changes to the prospectus regime to reduce the regulatory hurdles for listed firms, which should cut listing costs and make it easier to raise capital.
Additionally, from September 2025, FTSE Russell will allow companies trading in Euros or US dollars to be included in FTSE UK indices, enhancing London’s appeal to global firms. The threshold for rapid inclusion into the FTSE 100 and FTSE 250 has also been lowered, allowing successful IPOs to quickly gain index recognition, which should lead to improved liquidity and greater investor interest.
Pension reforms
One of the reasons often put forward for the lacklustre performance of UK equities over the past decade is the lack of backing from pension funds.
It is estimated that around 32% of Defined Benefit assets were invested in UK equities in 2006. By 2023, that figure was 2%.
To counter this, policymakers are looking at ways to encourage investment in domestic stocks, which will improve liquidity in London and boost economic growth.
Delivering her first Mansion House speech last November, Chancellor Rachel Reeves outlined plans to merge Defined Contribution and local government pension schemes to create Canadian and Australian-style ‘Megafunds’.
The goal is to deliver better returns for savers while increasing investment in domestic firms and infrastructure.
Over time, these reforms could increase liquidity and support company valuations, reinforcing London’s appeal as a listing venue. And with Emma Reynolds MP, the Economic Secretary to the Treasury, otherwise known as the City Minister, having previously served as Parliamentary Under-Secretary of State for Pensions, the ability to unlock this deep pool of capital would appear achievable.
Private Markets and PISCES
The number of companies that delisted during 2024 and 2025 supports the notion that many companies were not suited to a London listing. In 2025 alone, two of the largest providers of Private Market Auction facilities, Asset Match and JP Jenkins, have attracted a significant number of companies, some of them household names, onto their platforms.
Mason Doick at JP Jenkins, commented: “Since the start of 2025, we have welcomed 19 new companies to the JP Jenkins platform, with another 10 to announce in April alone, reflecting the way the market is moving. As a provider of both Intermittent (Auction) and Matched Bargain (Continuous) trading, we utilise the same infrastructure of the UK capital markets. In the recent months, we have seen companies like Superdry, THG Ingenuity and Hornby all announce their admission to join JP Jenkins. Our team work with lots of private growth companies looking for liquidity for their early investors; they also support Pre-IPO companies on the route to market and assist companies that maybe contemplating de-listing from public markets. All of these factors demonstrate how important JP Jenkins has been for UK companies, providing a credible alternative to a stock market listing.”
Iain Baillie, Founder Director and Executive Chairman at Asset Match added: “It is very important we provide a viable alternative for growing companies. This is one reason why we are very excited about the PISCES initiative. Auction based liquidity is clearly the way forward and increased visibility will likely lead to more engagement from both companies and investors".
In addition, a key innovation is the development of the London Stock Exchange's Private Intermittent Securities and Capital Exchange System (PISCES).
PISCES will provide a regulated platform allowing private companies to raise capital through intermittent auctions, without having to undertake a full public listing.
The London Stock Exchange hopes it will bridge the gap between private and public markets, acting as a regulatory stepping stone for firms who will one day transition towards a traditional IPO.
The initiative has been hailed in the media as the City’s ‘secret weapon’ to rejuvenate the London Stock Exchange.
It will also benefit investors, who have the chance to get in on the ground floor to invest in firms with high growth potential.
Investment nation
Despite London’s stature in global finance, UK savers invest much less of their wealth in equities than their counterparts in other wealthy, developed nations.
According to asset manager Aberdeen, UK adults allocate just 8% of their wealth to equities and mutual funds – the lowest of any G7 country. This compares with 33% in the US and an average of 14% across the remaining G7 nations.
However, the Government is considering ways to encourage Brits out of lower risk assets such as property and cash savings and into the stock market.
One proposal thought to be in the works is capping the amount of money savers can put into tax-free cash ISA accounts each year, promoting stocks and shares ISAs as a better option. Reports suggest cash ISAs could reduce to £4,000 a year with Stocks and Shares ISAs retaining the current £20,000 threshold.
The idea is that this would encourage money into stocks and shares ISAs and, ultimately, domestic UK companies instead.
If UK adults invested as much as their US counterparts it could inject up to £3.5 trillion into capital markets long-term.
Executive remuneration
Another challenge is the cultural divide on remuneration. The US rewards high-performing executives with substantial pay packages, fostering a risk-taking culture that attracts top talent. In contrast, UK executive pay is more constrained.
However, attitudes are shifting. Last year, the Investment Association updated its executive pay guidelines to “support a competitive remuneration environment, whilst meeting the wider expectations of investment managers, including their clients”.
Evolution, not decline
While headlines often paint a picture of London’s decline, these stories often miss all the work going on behind the scenes to bolster the City’s competitiveness. Policymakers understand that strong capital markets are crucial for economic growth, and they are implementing reforms to attract companies to grow, list and stay in the UK, enhance liquidity, and maintain London’s status as a top-tier financial hub. There is no ‘silver bullet’, but the changes underway should breathe new life into the UK’s capital markets. Over the past year, our industry directors and other subject matter experts have been actively involved in shaping these initiatives to support both the industry and our clients. Our latest review and summary of current industry developments can be found here.
These changes have already born fruit, with a spattering of IPO activity up in Q1 2025. Authentication tech firm Quantum Base and accountancy firm MHA listing on AIM recently, and there is a healthy pipeline of companies (including several high-profile names and overseas companies) in advanced discussion with advisors regarding a UK IPO over the coming 12-18 months. Z/Yen’s latest Financial Centres Index places London as the world’s second largest financial centre and continues to close the gap on New York.
With an ever-growing pipeline of companies speaking with advisors, it feels like companies seeking significant valuations are waiting for the precise time to launch their IPO, to ensure success. This is no bad thing and should ensure that once the tap turns back on, we should see some very well-prepared companies joining the market. Some of the key activities that these companies can be doing now is to build a solid share register, engage shareholders effectively, establish sound corporate governance procedures and design suitable employee share incentive plans. With our expertise, firms can confidently tackle these complexities, ensuring a seamless transition from IPO preparation to post-listing shareholder and employee management.