London’s equity capital markets, long hampered by a sharp decline in listings, are showing early signs of renewed activity, prompting advisers, law firms, and consultants to prepare for an expected rebound. New listings on London’s public markets fell from a peak of 125 in 2021 to just 17 in 2024, according to London Stock Exchange Group data, reflecting geopolitical uncertainty and falling valuations. So far in 2025, only 10 companies have been listed on AIM and the main market.
Despite the downturn, demand is building as private equity firms face pressure to exit investments through IPOs and corporates seek strategic advice. “We are at an inflection point right now and there’s no reason why the UK shouldn’t take more than its fair share of the incoming capital markets activity,” said Mark Austin, Corporate Partner at Latham & Watkins, who previously advised the government on capital markets reform.
Law firms, recruiters, and advisers are already staffing up in anticipation of busier months ahead. Linklaters, PwC, Deloitte, and Slaughter and May have all reported stronger activity this summer, particularly in IPO preparation, M&A, and demerger transactions. At the same time, caution remains, with firms seeking versatile candidates able to shift between IPO and private M&A mandates should market momentum falter. For CFOs monitoring financing strategies, the current shift suggests that while London faces competition from New York and other exchanges, a rebound in listings could offer fresh capital-raising opportunities over the next 12 to 18 months.
