UK's Regulatory Overhaul Aims to Counter US IPO Supremacy

The UK government has enlisted Goldman Sachs to bolster London's struggling IPO market, aiming to rekindle the city's status as a global listing hub. Chancellor Rachel Reeves and Goldman Sachs' Anthony Gutman will co-host a private roundtable with executives from technology and growth sectors to promote London as an attractive venue for public offerings. This initiative underscores the urgency of the UK's listing crisis, with London's IPO fundraising plummeting to a 30-year low of $248 million in August 2025, ranking it 23rd globally-trailing even Mexico. The event highlights recent reforms, including a Listings Taskforce and potential stamp duty exemptions for IPOs, as the Treasury seeks to address regulatory hurdles, high costs, and competition from the U.S. market UK Turns to Goldman Sachs to Help Rescue London’s IPO Market^[1].

The UK's decline contrasts sharply with the U.S. boom. In the first half of 2025, U.S. exchanges raised $28.3 billion across 156 listings, driven by next-generation tech and crypto firms like Circle and Bullish, whose valuations surged post-IPO. London, by comparison, secured just £160 million ($215 million) from five deals in the same period, the weakest performance since 1995. Analysts attribute the UK's struggles to regulatory burdens, including costly environmental disclosures and board diversity mandates, which deter growth-stage companies. Financial experts argue these requirements, while aimed at promoting equity, create anti-meritocratic barriers to listing UK Turns to Goldman Sachs to Help Rescue London’s IPO Market^[1].

Recent activity in London's market has sparked cautious optimism. Beauty Tech Group and Princes Group recently confirmed IPO plans, with the former's shares rising 5% in early trading. Shawbrook Group, an alternative lender, is also expected to file for a listing soon. These developments follow a period of stagnation, where only three main-market IPOs occurred in the nine months to September 2025. Advisers note a growing pipeline of potential listings, including software firm Visma, which could value its IPO at $20 billion if chosen for London. However, the market remains fragmented, with companies like AstraZeneca opting to upgrade their U.S. listings, further eroding London's appeal Could London's late IPO flurry mark a turning point?^[2].

The UK's regulatory environment is undergoing significant shifts. Financial regulators have scrapped proposed diversity, equity, and inclusion (DEI) rules for financial firms, citing industry concerns over compliance costs and regulatory overreach. The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) emphasized that voluntary initiatives will replace mandatory reporting, aligning with broader efforts to reduce bureaucratic burdens. While this move may streamline operations for firms, critics warn it could weaken corporate governance and risk management. The FCA also delayed its review of the bankers' bonus cap, reflecting a strategic focus on easing regulatory pressures .

The U.S. remains a dominant force in attracting high-growth companies. Revolut, a fintech unicorn, is reportedly considering a dual listing in London and New York, potentially valuing the firm at $75 billion. Such a move would mark a milestone for London, as it would be the first company to simultaneously join the FTSE 100 and list in New York. Regulatory reforms, including faster FTSE 100 inclusion for large IPOs, may tip the balance in favor of London. Meanwhile, U.S. markets continue to draw firms with their liquidity and less stringent regulations, as seen with crypto custodian BitGo's recent IPO filing and Figure Technology's $787.5 million raise UK Regulators’ DEI U-Turn Shifts Financial Sector Focus to Growth^[4].

The UK's strategy hinges on balancing regulatory agility with long-term competitiveness. While the government touts initiatives like a Listings Taskforce and reduced stamp duty as steps toward revitalizing capital markets, investors remain skeptical without immediate results. The FCA's shift away from DEI mandates and focus on non-financial misconduct rules by mid-2025 could further shape the sector's appeal. For London to reclaim its position, analysts stress the need for sustained regulatory clarity, investor confidence, and a pipeline of high-profile listings that demonstrate the city's viability as a global financial hub UK Turns to Goldman Sachs to Help Rescue London’s IPO Market^[1].