As London struggles to reignite its initial public offering (IPO) market, its best prospect may not come from flashy tech start-ups or billion-dollar unicorns — but from more traditional, grounded companies such as Princes, the UK-based tinned fish manufacturer. While that may sound uninspiring, this shift toward the practical and predictable could become London’s competitive advantage in a global market dominated by hype-driven valuations.
A Market Searching for Identity
In an ideal scenario, London’s stock market would attract a wide range of IPOs — from innovative tech firms to established industrials — supported by deep liquidity and global investor confidence. Domestic champions like Arm Holdings and Ashtead Group, for instance, would choose to stay and list at home rather than seek higher valuations in New York.
However, as London competes with the U.S. and Asia for listings, it may need to redefine its niche. The reality is that a focused strength is more valuable than thin diversity. Historically, London thrived as a center for natural resource giants such as Shell, BHP, Anglo American, and Glencore, which attracted investors, analysts, and momentum. The same model can now apply to mid-cap companies — solid, profitable businesses that may not be glamorous but form the backbone of the economy.
The Mid-Cap Advantage
London is well positioned to become the preferred market for mid-sized listings, both domestic and international. In the U.S., a company worth £5 billion ($6.3 billion) would struggle for visibility among trillion-dollar giants. In London, however, it would rank among major FTSE 100 names — larger than Burberry, easyJet, or WPP — and attract meaningful investor attention.
Such a shift could help mid-tier companies access follow-on capital through secondary share offerings and convertible bonds, which already account for the majority of equity raised in the UK. In 2024, IPOs made up less than 10% of total capital raised, with most funds going to already-listed firms seeking to expand.
Challenges and Opportunities
The road ahead is not without obstacles. London’s mid-cap industrials often lack direct comparables, making them less attractive to passive investors in an era dominated by index funds. Yet, as the article notes, stockpicking is not a lost art — and active investors can still find value in underappreciated businesses with steady growth potential.
For private equity firms, London’s pivot to mid-sized listings could be a welcome development. Many are currently sitting on a backlog of corporate carve-outs that need long-term, stable public listings. The London market could provide a “forever home” for these assets.
Building Purpose, Not Prestige
In the global competition for capital, London doesn’t need to outshine New York or Hong Kong by chasing every high-profile tech IPO. Instead, it can play to its strengths — offering a reliable, transparent, and supportive environment for steady, sustainable businesses that underpin the real economy.
As the analysis suggests, missing out on the next overhyped tech company isn’t a failure — it’s a strategic choice. By embracing its identity as a haven for practical, mid-cap companies, London can rebuild its IPO market around substance over spectacle, giving investors a market that prizes consistency and real value over fleeting hype.
