While IPO activity on the London Stock Exchange remains below historic levels, the year highlighted a broad range of strategic opportunities for listed companies, including secondary fundraisings, takeovers, delistings, and corporate restructurings.
Samantha Myers, partner in Reed Smith’s Global Corporate Group, said: “2025 has shown the resilience of the London ECM market and the team has worked on a range of transactions this year showing the breadth and depth of the team’s expertise. AIM reforms and upcoming regulatory changes in 2026 should create new opportunities for growth companies and help London remain an attractive venue for capital raising — we look forward to supporting our clients in the new year.”
IPOs and fundraising
The team supported a range of capital-raising transactions, demonstrating the ongoing importance of secondary fundraisings:
- Secondary fundraisings by Northern Venture Trust PLC, Northern 2 VCT PLC and Northern 3 VCT PLC to raise up to £60 million ($80.11 million) for the 2024/25 tax year and to raise up to £50 million ($66.91 million) for the 2025/26 tax year
- £18 million ($24.03 million) emergency funding by Lombard Odier Asset Management for AIM-listed IQE PLC
- Anchor investment in the proposed £230 million ($307 million) Main Market listing of Cobalt Holdings
- Proposed move by GlobalData from AIM to the Main Market
- £10 million ($13.39 million) secondary fundraising by Bow Street Group PLC (acting for Cavendish and Allenby)
- Multiple open offers for Tern PLC
Secondary fundraisings continue to be the primary driver of ECM activity. Upcoming changes to the UK prospectus regime, including a 75% threshold for requiring a prospectus, are expected to make follow-on capital raising simpler and may further increase secondary offerings relative to IPOs in 2026.
Public takeovers
The team advised on high-profile and competitive takeover processes, including:
- £70.4 million ($94.22 million) takeover of The International Stock Exchange Group Limited by Miami International Holding Inc.
- Two competing take-private approaches for GlobalData
- Competitive £489 million ($654.5 million) takeover offer for Warehouse REIT, including the public auction process initiated by the Takeover Panel
- Advice to Kroll as independent valuer on Pinewood Technologies PLC’s acquisition of Lithia’s majority stake in Pinewood North America (£58 million / $77.63 million) and Apax Partners’ takeover of Apax Global Alpha (£841 million / $1.12 billion)
Returns of value
Shareholder returns remained an important focus:
- GlobalData share buybacks and a tender offer returning £130 million ($174 million) to shareholders
- Colefax Group tender offer returning £6 million ($8 million) to shareholders
- Advising a newly established London bank on documentation for buyback programmes
Strategic advice
The team has provided strategic advice to many clients as they seek to navigate the difficult markets. This has led to a variety of outcomes, including the following:
- Competitive takeover offer for Warehouse REIT
- Proposed delisting of Polarean from AIM
Market outlook and trends
Looking ahead, the London ECM market shows signs of cautious improvement. IPO volumes are expected to rise modestly in 2026, although activity will likely remain below historic levels. AIM reforms intend to streamline admissions, reduce costs, and support founder-led growth companies, encouraging both new listings and growth-company activity.
Companies may increasingly consider migrating from AIM to the Main Market as sentiment improves and reforms take effect. Dual-listing trends, particularly with U.S. markets, continue to influence London’s position as a capital-raising hub, broadening access to liquidity and encouraging regulatory enhancements. Emerging sectors, including crypto and other growth-focused industries, may see increased ECM activity as regulatory clarity develops. Key 2026 milestones, including new UK Listing Rules and the Public Offers and Admissions to Trading regime, are expected to shorten IPO timetables, simplify prospectus requirements, and influence issuer strategies.
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