It has been a rather dark couple of years for new issuance in the London equity market, but perhaps as we head towards the mid point of 2025, some green shoots of recovery are starting to emerge. It’s still only small steps for now, but the regulatory filings noting “Intention to Float” are being seen with a little more frequency and that’s despite many commentators either calling time on the London market or – perhaps more accurately – concluding that many companies will need to stay private for longer.
So, let’s hope for a moment that the activity of recent months as the market digs its way out of hibernation is the start of something bigger. The question now must surely be how the issuer can convince the investor that these transactions might actually deliver better outcomes than many of the post-COVID cohort managed. Many of these stocks lost as much as 50% of their valuation in the first year, reportedly leaving investors feeling burnt, with overly ambitious valuations combined with soaring interest rates creating a perfect storm.
Whilst there’s nothing that can be done to mitigate the risk of macroeconomic influences, issuers looking not only for a successful IPO but also a longer term positive outcome would be well advised to ensure valuations are realistic. Interest rates, whilst off their peak, remain attractive and investors will be expected to be pouring over a company’s prospects with the proverbial fine-toothed comb. But even more importantly is the fact that issuers have a responsibility to their securities holders to keep a laser-like focus on the cost of maintaining a public market listing.
Much has been said about the cost of remaining on a public exchange in London. Indeed this concern has been behind a flurry of delistings or migrations onto private market venues in the last few months, with directors feeling unable to justify the ever-escalating expense and reporting burden that comes with the listing.
At the outset, a thoroughly comprehensive cost-benefit analysis should be undertaken that assesses the requirements of the issuer not only today, but also in the medium term. Is the venue they are looking to list on actually the best fit? Then when it comes to the advisers, ensure that exceptional value for money sits at the heart of everything they do – and that they can adapt to meet the company’s needs as it evolves.
The one point that stands out time and again for the team at Avenir Registrars is how the decision to appoint many of these key facilitators – including a securities registrar – can be left quite literally to the 11th hour. The requirements for completing the listing process are all well documented so there’s no excuse for having to rush any decision, but showing creativity and control at every point of the journey can only help endear investors to your proposition.
The mantra that one size doesn’t fit all is a well-hackneyed one and something that we have at the very heart of the Avenir Registrars proposition, Because we work with issuers of all sizes, we know and understand the benefit of having tailored solutions that meet a company’s requirements without being over-engineered, whilst also being able to quickly accommodate the important phases of growth as they emerge.
If you’re an issuer considering a public market offer, a founder who wants to better structure a cap table solution to accommodate a potential IPO in the future or an adviser who is working with market participants on their listing journey, talk to us to find out more about the role we can play in helping you deliver the very best value to shareholders. It seems unlikely that the recovery in market listings will be swift, but collectively we can work to make it an enduring one.
An amended version of this article originally appeared in the June 2025 version of AIM Journal. You can download a printable version here.