UK government escalates efforts to revitalise London’s IPO market amid private equity push

The UK government has stepped up efforts to revive London’s flagging IPO market by opening talks with a group of major private equity firms, as ministers search for ways to persuade more sponsor-backed companies to choose the City for their exits.

According to the Financial Times, officials from Downing Street and the Treasury have recently met firms including Hg, Clayton, Dubilier & Rice, General Atlantic, CVC, EQT and Elliott Management to discuss how London could be made more attractive as a listing venue. The conversations come against a backdrop of a prolonged drought in flotations, with only seven companies having listed in London so far this year, while takeovers and overseas moves continue to shrink the UK market.

Private equity houses remain central to the debate because flotations are one of the few routes that can deliver a clean exit from mature portfolio companies. Yet London has struggled to compete with larger and more liquid exchanges, particularly New York. Among the businesses now seen as possible candidates for future listings are EQT-backed veterinary group IVC Evidensia and CFC, the cyber insurance specialist, both of which have been linked with possible IPOs next year. Elliott-owned Waterstones is also reported to be weighing a market debut, with London and New York on the table, while Hg-backed software group Visma had previously been viewed as a potential flagship flotation before volatility delayed those plans. General Atlantic-backed Gymshark has likewise been mentioned as a possible future listing.

The discussions with private equity firms reportedly covered a range of policy ideas, including changes to stamp duty, adjustments to pension fund investment rules and lessons from European markets such as Sweden, where domestic share ownership has been more successfully encouraged. Those talks build on measures already announced by the government, including a temporary stamp duty exemption for newly listed companies, changes to stock option rules and lower free-float requirements intended to allow founders to keep larger stakes after listing.

At the same time, ministers are still divided over whether stamp duty on share purchases should be scrapped altogether. Backers of abolition say the tax acts as a brake on investment in UK-listed equities and leaves London at a disadvantage to overseas rivals. Critics argue that it is a valuable source of revenue that would be difficult to replace.

The push to strengthen public markets comes as the government has also moved to create new routes into equity financing. It has introduced the Private Intermittent Securities and Capital Exchange System, or PISCES, a sandbox designed to allow private companies to trade shares intermittently while preserving tax advantages for employees exercising options. The London Stock Exchange has already welcomed TPE as the first user of its Private Securities Market under the FCA’s PISCES framework, a sign that the infrastructure for private-market liquidity is beginning to take shape alongside the traditional IPO market.

That development reflects a broader effort to make London more competitive for high-growth businesses, particularly in sectors such as technology, life sciences and other innovation-led industries. The government has also set out plans for a new route to the UK IPO market aimed at European mid-sized growth companies, with reforms to eligibility, reporting and free-float rules.

But the pressure on London remains acute. Reports suggest the London Stock Exchange has identified around 20 companies with US depositary receipt programmes that could consider shifting their primary listing to New York, adding to concerns over the erosion of the UK’s quoted market. Even so, the Treasury says companies have raised £25.8bn through IPOs and follow-on equity offerings in London since the start of 2025, and insists it will continue to press ahead with reforms to support public markets.