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      Timing is everything when it comes to a successful initial public offering (IPO). Being ready for when the right window opens is crucial. And the preparation involved is substantial: not just for the transaction, but also for the very different realities of operating a public company.

      So what is the outlook for IPOs over the rest of 2025 and beyond? And how can businesses ensure they’re in the best possible position when the opportunity comes?

      Over a series of three panels at an event hosted by KPMG “Preparing for IPO Success – Are you ready?”, we looked at:

      • the outlook for the IPO market during the next few years;
      • how best to prepare for flotation; and
      • What life is like as a listed business.
      Rob Crowley
      Rob Crowley

      Partner at UK Capital Markets Advisory Group

      KPMG in the UK

      We have summarised the discussions over the three panels below.

      Is the IPO market set for recovery?

      First, let’s look at where the IPO market is headed in the near future.

      Signs of recovery

      After a bumper 2021, global appetite for IPOs endured a very quiet couple of years.

      A more positive 2024 brought encouraging signs, driven for the most part by mid-cap listings in the UK such as Raspberry Pi and Applied Nutrition, both of which traded well. And while deal volumes are behind 2021, the London Stock Exchange (LSE) still saw around $50 billion raised last year.

      That fledgling recovery stalled abruptly during the early half of this year, as US trade tariffs injected unpredictability into the world’s economy.

      But that unpredictability has eased. Volatility indices have fallen back to calmer levels, and market conditions have improved markedly. This suggests a ‘new normal’ is taking root, as markets and issuers get used to making decisions in a climate of relative uncertainty.

      Meanwhile from a London perspective, the UK is enjoying a period of political stability after previous volatility where we saw six prime ministers in just eight years. While there is nervousness about the upcoming Budget, there are no other major political events looming.

      The pipeline is strengthening

      We are expecting continued improvements for the remainder of 2025 and beyond.

      Equity markets are trading at multi‑year highs. Improved bank valuations, falling interest rates and a benign climate for bad debts prompted the Guardian to recently highlight “tentative signs of a revival in the IPO market”.

      Private equity houses have significant volumes of investments due for exit, and we know from our discussions with them that they’re beginning IPO preparations across their portfolios.

      Against this positive backdrop, we can expect the pipeline to strengthen – and broaden. In addition to mid-cap transactions, larger deals and sponsor-backed assets should begin to come to the market.

      Indeed, at the time of this event, some major announcements were expected (Shawbrook, Beauty Tech, Princess Group) and have since completed. Europe has also seen high levels of activity with five of the largest ten follow-on offerings.

      What’s more, activity is coming through a number of non-classical routes, which aren’t reflected in LSE’s volume data. These include demergers, reverse transactions, secondary listings and cash shells raising funds for acquisitions.

      This renewed appetite for IPOs was in evidence at the IPO workshop and reflects the strengthening of the IPO pipeline.

      The sector perspective

      At the moment, the nascent resurgence in IPO activity is being driven by a handful of sectors such as commodities and asset management. But we anticipate an extremely broad-based recovery.

      We would expect to see flotations across a wide range of industries between now and 2027 – for example:

      • Sectors throughout the consumer space
      • Technology
      • Natural resources
      • Industrials
      • Financial services (with fintech building over the longer term)
      • The electric vehicle supply chain

      From 2027 onwards, the defence sector – such as drone technology – will likely come to the fore, given the huge amounts of capital governments are investing in military capability.

      As a rule, the natural choice of location is the home market. But other exchanges will come into the frame when there’s a strong rationale for listing further afield. Motivations to do so might include:

      • The potential to boost the company’s valuation.
      • A global operational footprint.
      • A less sophisticated local market which cannot accommodate your requirements.

      Whatever the reasons for your choice of market, make sure you test and validate your thinking as part of your engagement with banks and investors.

      Now's the time

      IPO windows are re-opening. As conditions improve, activity looks set to recover from the dampened levels we’ve experienced of late.

      The next couple of years or more should be a period of sustained issuance across markets. We should see not just more activity, but also larger transactions – via both classic and alternative routes, and across a span of industries.

      If your business is considering going public, start getting ready now to take advantage of the recovery. You can’t begin preparing too early – read our next article to see what should be on your IPO to-do list.

      Our advisory insights

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      Our people

      Rob Crowley
      Rob Crowley

      Partner at UK Capital Markets Advisory Group

      KPMG in the UK

      Svetlana Marriott
      Svetlana Marriott

      Head of UK Capital Markets Advisory Group

      KPMG in the UK

      MTD TEST

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