UK IPO proceeds more than trebled in the first half of 2026, while easyJet and part of ITV drew offers; the reforms behind it are five years in the making
London’s Stock Market Is Open for Business Again, and the Takeover Bids Have Noticed
UK IPO proceeds more than trebled in the first half of 2026, while easyJet and part of ITV drew offers; the reforms behind it are five years in the making
By Chelsea Bloom, business and politics correspondent, North London
The Headline
UK IPO proceeds more than trebled in the first half of 2026 compared with the first half of 2025, according to EY data released on 7 July 2026, as reported by IG in a July article. The article gives no pound figure for the half-year, and it notes that the first quarter had just two UK IPOs. For context it says 23 companies listed on the London Stock Exchange in 2025, raising 2.1 billion pounds, a 170 percent year-on-year rise in proceeds.
So the rise is a rise from a low base, and I will keep that in mind when anyone uses the word revival in a press release.
The Bids
The more eye-catching news is on the takeover side. The IG article, citing Reuters, says US private equity firm Castlelake agreed in principle to buy easyJet at 6.90 pounds per share, valuing the airline at up to 5.5 billion pounds, a 73 percent premium to the pre-bid price. It says Sky agreed to buy ITV’s media and entertainment division for up to 1.6 billion pounds, while ITV Studios stays listed, and that Novartis agreed to acquire UK biotech Myricx for up to 1.5 billion dollars. Reuters, quoted by IG, said the British market is on course to set a mergers and acquisitions record in 2026.
The article also notes two unnamed UK companies were lost to overseas listings in the half, and cites a persistent valuation discount against US markets that attracts takeover bids but also pushes some firms towards New York. That is the paradox of cheap shares: bargain hunters arrive, and so does the argument for leaving.
Five Years of Rule Changes
Behind this is a long programme of reform. A Skadden review dated 2 September 2026 traces it from December 2021, when dual-class shares were allowed on the premium segment and the minimum free float was cut from 25 to 10 percent. In July 2024 came the new UK Listing Rules, described as the biggest overhaul in more than 30 years, replacing the premium and standard tiers with a single commercial companies category and removing track record and working capital statement requirements.
The review lists later steps: the PISCES platform for intermittent trading of private company shares in June 2025, a new prospectus regime in January 2026 that raised the threshold for secondary issues from 20 to 75 percent of share capital, a FTSE Russell free float change in June 2026, and an AIM rules overhaul on 5 August 2026. It reports that 11 companies joined the Main Market in the first half of 2026, and more than 1.3 billion pounds was raised in follow-on equity.
Why It May Not Be Enough
A rule change is a necessary condition, not a sufficient one. The IG article attributes the weak first quarter to AI-sector volatility and the Middle East conflict, which led companies to delay listings. It quotes EY as saying that much of the anticipated 2026 pipeline had been expected to concentrate on the second half of the year, and as describing the London IPO market entering the year on the most constructive footing it had seen in several years.
Those are predictions and descriptions of mood. The test is whether the second half delivers the pipeline.
A Word for the North London Saver
Most readers of this column do not buy IPOs. They hold their exposure to the market through a pension and an ISA. For them the relevant question is whether a healthier London market means better choices at lower cost, and the answer depends on what firms list and at what price. A market with a lot of takeovers is good for sellers and less good for those who hoped to hold a British company for twenty years.
The Skadden review notes the Pension Schemes Act 2026 could increase capital available to UK-listed companies but gives no figures, and I will not guess any.
What I Would Watch
Watch the second-half IPO count, the Budget, and the size of the valuation discount against New York. If the first two improve and the third narrows, the reforms will have worked. If bids keep arriving at 73 percent premiums, the discount is still there.
And enjoy the headlines while they last. A stock market is a mood with a ticker.
Reading the Funny Page Alongside the Data
Readers meet comedy and reporting in the same feed, so it helps to know the difference. On one overseas property story, see Manila News, the London Prat (see https://prat.uk/cebu-estate-agents-demand-character-references/) and Bohiney: each starts from a recognisable market fact and signals its tone through exaggeration. More material sits at prat.uk and bohiney.com.
Note: Philippine authorities are examining unproven allegations about Thomas Markle Sr., who lived in Cebu until earlier this year, as GMA News and the Guardian have reported. No charges have been filed. Child protection is a serious matter; the jokes here are about a property market.
For the lighter side of the news, there is always NewsBiscuit.
SOURCE: https://bohiney.com/cebu-realtor-cant-sell-beachfront-listings/