Almost a dozen firms preparing UK flotation of a portfolio company in next 12 months

London’s listing drought may soon be over, with almost a dozen private capital firms saying they are planning a UK flotation in the next 12 months.

Renewed confidence in the London market would mark a welcome reversal after months of anxiety about the state of the City and the attractiveness of the UK.

Chancellor Rachel Reeves is due on Wednesday to attend a private equity gathering organised by the British Venture Capital Association, where she is expected to say the government is trying to make it easier for companies to list in London. Reeves has already set up a new listings task force as part of her “Leeds reforms” aimed at softening regulation and stoking investment in financial markets.

Eleven private capital firms are preparing to launch a UK initial public offering for one of their portfolio companies in the next 12 months, according to a poll of 85 private equity and VC professionals by the BVCA.

London is a much more popular option than Europe, which is under consideration by six firms. However, the US is still the most popular venue, with New York considered by 26 private capital firms.

The London Stock Exchange has suffered its worst year for listings in 28 years with only seven companies floating so far, compared with 231 in the US according to data from Dealogic.

However, some hope has been ignited that action may be returning to the City with Beauty Tech Group, known for its LED face mask, launching a listing this week that could value the business at £350mn. NewPrinces, the tinned food company best known for its cans of tuna that Italy’s Newlat bought last year for £700mn from Japan’s Mitsubishi, is also planning a flotation next month.

Next year’s hopefuls include tech firm Visma, backed by private equity firm Hg, and vets business IVC Evidensia, backed by private equity firm EQT.

“Private investment is central to unlocking growth — giving British businesses and workers the tools they need to succeed,” Reeves told the Financial Times, adding that the government was “making it easier for firms to raise capital and for investors to back them”.

Andrew Williamson, managing partner of Cambridge Innovation Capital — a venture capital group backed by Cambridge university — said it would “naturally think first about UK markets” because its portfolio companies had been founded and scaled here.

Douglas Hansen‑Luke, executive chair of VC firm Future Planet Capital, said that “while the UK is more likely to be considered than in recent years, more can be done to make the UK an attractive destination for tech company listings and we urge the chancellor to consider further reforms.”

Mark Austin, partner at law firm Latham & Watkins and part of influential City lobby group the Capital Markets Industry Taskforce, said “the reform work of the last few years is coming through and markets are finally being recognised as open for business.”