Hot on the heels of the first positive UK equity fund flow data in 42 months earlier this week, today we publish our latest IPO Speedometer report that gives a summary of the UK IPO market in 2024 and an outlook for 2025.
UK IPO MARKET: Peel Hunt IPO Speedometer – Clear but gradual progress in UK IPO
Although we saw some slowing in momentum over recent months (the Speedometer remained constant vs. October!), it’s important to note the very tangible progress seen in the UK IPO market over the course of 2024. After what were very disappointing years for UK IPO’s in ’22 and ’23, ’24 saw a gradual start of what we expect to be a broader a re-opening of the IPO market in 2025. It was definitely a European-led IPO recovery (larger deals and more activity generally), particularly in the first instance, but the deals that priced in the UK generally worked well (all showed positive 1 week aftermarket performance) and saw strong support from UK domestic institutions despite the ongoing headline outflows. We continue to see the market as ‘selectively open’ and is there for the right companies (higher quality), in sensible deal structures (often smaller deal sizes) and at the right valuations. But IPO is a product that is working in these situations and is a tangible option again for many companies and shareholders. Peel Hunt acted as Global Coordinator on 2 of the 4 principal UK IPOs this year (Raspberry Pi and AOTI).
As we look forward to 2025, there are many reasons to be positive and we feel constructive on the outlook for UK IPOs. IPOs are generally working well, macro is trending in the right direction, we have relative political stability, persistent fund outflows have currently reversed and investors are engaging on deals. There is also a tangible pipeline of issuers that are currently meeting with investors in early stage processes and monitoring market windows in 2025. We’re expecting a broader re-opening to start in Q2 ’25, as many of these companies want to have FY ’24 financials finalised before they come to market.
