deVere: London reforms to spark IPO surge

London’s capital market reforms seek to boost listings, draw high-growth companies, and restore initial public offering (IPO) competitiveness, according to deVere.

London’s new stock market reforms are likely to make the City more attractive, halting years of falling short against global competitors, said James Green, regional director of deVere Group, one of the world’s largest independent financial advisory organisations.

Green, who has experience across 18 regulated financial entities, offered a bullish analysis of this week’s rollout as the UK unveils sweeping capital markets changes aimed at reversing a prolonged slump in listings and fundraising.

The London Stock Exchange has endured a historic drought in new listings. Only nine companies listed in the UK in the past year, and IPO fundraising hit a three-decade low in 2025, with just GBP 160 million ($215.8 million) raised in the first half of the year.

The number of publicly traded companies in London has fallen by around 25% over the past decade, highlighting the erosion of the UK’s capital markets ecosystem.

Reforms introduced this month aim to simplify capital raising, reduce disclosure burdens, and accelerate deal timelines, in a bid to make London more competitive with New York and other global exchanges.

Green said the reforms mark a decisive shift in tone and policy that investors and issuers should take seriously.

“London is finally sending a signal that it wants to compete again.

“For several years, companies have cited lower valuations, thinner liquidity, and heavier regulation as reasons to look elsewhere. The direction of travel has changed.”

He argued that recent rule changes on prospectuses, follow-on share offerings, and bond issuance could materially lower friction for companies considering listing or raising capital in the UK.

“Reducing regulatory complexity and cost matters. Capital markets thrive when access is efficient, predictable and proportionate. These reforms move the needle in that direction,” said the investment and regional director.

The UK’s new Public Offers and Admissions to Trading regime, which replaces EU-era prospectus rules, is designed to simplify fundraising for listed companies and speed up transactions.

Regulators estimate the changes could save companies tens of millions of pounds annually and accelerate deal execution. Policymakers also aim to broaden retail participation in capital markets, including through simplified corporate bond structures.

Green said the reforms arrive at a moment when global competition for listings is intensifying and private capital markets are reaching saturation.

“Private markets have grown dramatically, but many companies are reaching a scale where public markets make sense. Private equity funding cycles mature and then listing often becomes the next step.

“It’s refreshing that London wants to be in the conversation again,” he said.

He added that the UK’s renewed push to anchor high-growth companies domestically, particularly in AI and tech, life sciences, and clean energy, could reinforce the momentum.

“Governments are increasingly strategic about where companies list. Supporting domestic champions and keeping innovation ecosystems local is part of economic strategy, and capital markets policy is now a tool of industrial policy,” said Green.

While cautioning against unrealistic expectations, he believes the reforms mark a turning point in sentiment.

“We don’t expect an immediate surge in IPOs as capital markets typically recover in phases. Confidence returns first, pipelines rebuild next, and execution follows,” he said.

He noted that global macro conditions, interest rates, and geopolitical uncertainty will still influence listing decisions, but policy alignment is a necessary precondition for recovery.

“Regulation alone doesn’t create IPOs, but misaligned regulation can prevent them. London has removed some structural barriers, and that changes the calculus,” he added.

He also pointed to valuation gaps between London and US markets as a critical factor.

“Companies chase capital, liquidity and valuation. Narrowing the valuation discount is essential.”

Green argued that investors should view the reforms as part of a broader strategic reset for the city.

“This is about restoring London’s relevance in global capital formation. Market policy needed to catch up,” he said.

He concluded that reforms could influence asset allocation decisions and corporate strategy in the coming year.

“London is positioning itself for a new cycle of listings, capital raising and market depth. The trajectory looks constructive.”

Re-disseminated by Wealth and Society