Market Standards Trend Report

2025 saw the first tentative signs of public equity markets re-opening after a dry-period from 2021.  A broad range of sectors were represented and there was optimism that provided their businesses demonstrated ongoing good performance in their post-IPO reporting cycles, confidence in UK equity markets and IPO's would steadily return. 2025 saw a continuance of listed companies being taken over and leaving the market, which ought to have been an additional  catalyst for re-igniting the UK IPO market.  The year also saw investors increasingly looking to retain companies on the market, rather than seeing them being taken private by private equity, such as happened with Primary Health Properties' successful cash and share offer for Assura in competition with an all-cash private equity offer.  This willingness to support existing listed companies was also demonstrated by the support seen for secondary issues through the year. 

UK equity capital markets showed signs of a meaningful rebound in 2025, with a modest increase in IPO activity increasing over the previous year and larger, high-profile listings buoying overall deal value despite volumes remaining below historical highs. Notable successes included the Shawbrook Group, Princes Group and Beauty Tech Group IPOs in the second half of 2025. We are optimistic that this momentum will carry over into 2026, yet uncertainty persists to date with the ongoing conflict in the Middle East and related energy market disruptions. 

The consequence of a subdued IPO market is not merely inconvenience for investment bankers and advisers; it has real implications for individual investors. The most compelling growth businesses are increasingly remaining private for longer, or choosing to remain private entirely, meaning that the gains from high-growth companies are accruing almost exclusively to institutional investors in the private markets: the very pension funds that are simultaneously underinvesting in public equities. Retail investors, by contrast, find themselves locked out and only able to invest in mature companies where significant capital gains are less likely.

The narrative around IPOs needs to change. With the right regulatory environment, the right capital base and a clearer articulation of the benefits of public ownership, there is no reason why the IPO market cannot find its way back to relevance. The structural reforms underway provide a foundation; the task now is to build on them.

Fermi’s record-breaking float was one of the biggest by market capitalisation that we have seen on the LSE in the past ten years. Texas-based Fermi chose to list in the UK to enhance its international profile and appeal to investors in the Middle East and Far East. The dual listing boosted confidence in the London market and provided traction for the later listings of Princes and Shawbrook. The global data center market is expected to grow significantly over the next five years, largely driven by AI demand and AI-linked energy infrastructure needs.

We have experienced an increasing interest among larger AIM listed companies in moving to the Main Market and our team assisted Gamma Communications plc to move to the Main Market last summer.

Typical reasons for the move include the following:

1. Greater Prestige & Market Credibility

The Main Market is viewed as the LSE’s premier listing venue, offering higher prestige and signalling corporate maturity and stability to investors. This enhanced standing can improve market confidence in the company.

2. Access to a Larger, More Diverse Investor Base

Many institutional investors and tracker funds are restricted from investing in AIM stocks. A Main Market listing opens the door to a significantly broader pool of investors, driving higher demand for the shares.

3. Potential Inclusion in FTSE Indices

Only Main Market companies qualify for the flagship FTSE indices (FTSE 100, FTSE 250, etc.). Index inclusion can materially increase liquidity due to automatic buying by index‑tracking funds.

4. Improved Liquidity & Trading Volumes

The Main Market offers deeper liquidity and materially higher average trading volumes, supporting better price discovery and potentially reducing share price volatility.

5. Enhanced Analyst Coverage & Visibility

Companies on the Main Market typically benefit from broader analyst research, improved information flow, and increased business press coverage—all of which boost profile and investor engagement.

6. Alignment with Company Growth & Maturity

A move often reflects that a business has reached a scale and level of sophistication where Main Market governance standards and investor expectations are a better fit. It can be a natural next step in the company’s lifecycle.

7. Recent Regulatory Reforms Have Reduced Barriers

The recent FCA reforms have simplified the Main Market listing structure, eased shareholder approval requirements, and streamlined eligibility—making the transition more accessible and appealing than before.

The mining and natural resources industry has now featured prominently in AIM IPOs in the past 4 years.  Global copper demand is surging, driven by clean energy technologies, data centers and AI infrastructure and electric vehicles.  Record-high prices of gold are encouraging mining companies to increase output. Mining companies continue to use the equity markets to fund exploration efforts and mine development, despite difficult market conditions. We see this trend enduring, largely due to energy transition demands.

IPO activity levels over the course of 2025 remained suppressed albeit we have seen a slight uptick in companies coming to market. Potential issuers across the UK and the wider global markets continue to navigate challenging market conditions which have been in existence for the preceding two/three years. However, the London markets remain stable, robust and well-equipped to withstand difficult circumstances and there have indeed been a number of success stories to bolster investor confidence.  

AIM continued to attract a stable flow of high-growth companies such as accountancy and advisory firm MHA. It is notable that MHA’s £275m valuation came at a time when US reciprocal tariffs were announced causing turbulence in the global markets,  which demonstrates a certain domestic robustness this side of the Atlantic. The IPO of MHA was unique in the sense that many professional services firms have favoured private equity investment rather than going down the public route. AIM’s regulatory framework should afford MHA more flexibility to execute its M&A strategy.

Recent reform to the UK Prospectus regime has increased the threshold for triggering the requirement for a prospectus for further issuances from 20% to 75% of existing share capital (for non CEIFs). This will enable listed companies to implement and execute capital raisings more efficiently and at reduced costs. It will be interesting to see how market practice evolves over time in terms of voluntary prospectus publications, particularly in respect of fundraisings that lean towards the full threshold or have an overseas element.

The historic further issuance listing application process added costs and regulatory burden for issuers, with inefficiencies and delays for transactions. The FCA noted that its move towards the new approach neither harmed investors nor negatively impacted their investment decision-making.

By introducing the new ‘listing relief’, it is clear that UK Government policy has attached significance to bolstering the success of London as a listing destination.

Towards the end of 2025, we saw a series of immediate changes to the AIM Rules relating to dual class share structures and related party treatment of director remuneration. These changes together with other proposed measures (for example, increasing the substantial transaction disclosure threshold and recalibrating the Nomad role) will keep AIM a dynamic and attractive market for growth companies.

The LSE has recently welcomed the first user to launch a transaction on the Private Securities Market under the FCA’s PISCES framework. In addition, JP Jenkins announced  the first PISCES trade by board games firm Qplay. It will be interesting to see what appetite companies and investors will have regarding utilisation of PISCES.

It makes sense for the UK to work proactively to take the necessary steps to implement digitisation across the market. This should remove some friction points in the day-to-day administration of listed companies such as cumbersome, expensive and inefficient modes of shareholder communication (e.g the distribution of printed materials including notices of general meeting and of annual reports).

Against the challenging backdrop, the regulatory reform agenda does provide some genuine grounds for optimism. The launch of PISCES, the publication of the AIM Rules Feedback Statement and the introduction of the new Prospectus Regime all represent meaningful steps towards a more proportionate and accessible regulatory environment for companies considering a public listing. I have personally seen the impact of the more permissive approach to acquisitions included in the AIM Rules Feedback Statement which has made certain acquisitions more viable for smaller AIM companies. AIM should be a great place for companies to implement a buy and build strategy and this is an important part of this. The relaxation in the UKLRs around acquisitions has also been welcome and you can see the benefit of this in the recent proposed acquisition by Savills PLC of Eastdil Secured, a transaction that would have been a Class 1 without the rule changes.

As well as market conditions, 2026 saw further changes in the regulatory position, with the POATRs regime coming into effect, further simplifying the listed company regulatory environment after the Listing Rules changes introduced in 2024.  Granting stamp duty relief on sales of shares in newly listed companies for three years post-IPO provided a further benefit for companies looking to IPO in the UK.