The London Stock Exchange is expected to receive a much-needed boost in the first half of this year as firms list after a drought of floats in 2024, writes Calum Muirhead.
Analysts at consulting giant EY said there were signs of "cautious optimism" for 2025 thanks to a "robust pipeline of deals" which could drive a "rebound in activity."
A key upcoming listing is fast fashion giant Shein, which is looking to float on the UK stock market in the first three months of the year and is expected to fetch a value of around £50bn.
Scott McCubbin, EY's UKI IPO leader, said: "A stabilised domestic policy environment post-election, robust pipeline of deals and listings reform are creating opportunities to restore London's competitiveness.
"While London faces strong competition from other financial centres, its unique strengths - including a global reputation for financial expertise - remain competitive advantages."
The analysis will provide relief to stock market bosses after the LSE was battered by a lack of listings and the defection of several firms to other exchanges.
EY's data showed 18 companies debuted in London last year, the fewest since it began keeping records in 2010.
Of these, eight occurred in the final three months of 2024, including film production group Canal+.
The Paddington maker's December debut, which raised £2.6bn, was the largest float on the LSE since 2022.
Shares have since fallen nearly 30pc from their listing price of 290p.
But one silver lining is that while the number of listings fell, the amount they raised soared.
EY found £3.4bn was raised from London listings in 2024, up from the £954m from 23 companies the previous year.
But concerns about attracting companies persist, as 88 firms delisted or shifted their main listing away from London.
Last week several top City brokers urged UK Chancellor Rachel Reeves to ditch the stamp duty tax on UK shares, warning it was deterring investment.
Paul Geddes, chief executive of wealth manager Evelyn Partners, told the Daily Mail last week axing the stamp duty, combined with other reforms, could "reignite interest in the UK market".
