London IPO market revival beckons as private equity giants eye listings opportunities

London’s IPO market, which has experienced a significant slowdown in recent years, could soon see a revival led by the world’s largest private equity firms. After a subdued period dominated by smaller listings like Raspberry Pi and MHA, the focus is shifting to bigger players capable of delivering substantial returns to investors.

Private equity giants such as KKR, Blackstone, and CVC have been under pressure to demonstrate their ability to return value to their investors. Listing large assets on public markets offers a promising solution, especially as these firms face challenges in offloading sizeable holdings through private sector sales. Sources suggest institutional investors are receptive to larger IPO candidates due to the liquidity they provide and their ability to ease concerns over share price volatility.

One of the most anticipated potential listings is The Access Group. The Loughborough-based software firm, valued at £9.2 billion in 2022, has seen considerable growth through private equity investments from Hg Capital and TA Associates. However, it recently swung to a loss of £26.6 million due to unexpected accounting charges on an acquisition. Despite this, its track record of consistent operating profits and its significant presence in the global tech market make it an exciting prospect for investors.

Another potential contender is Söderberg & Partners, a Swedish insurance broker expanding aggressively in the UK and Spain. With a valuation of over $1 billion, KKR’s investments in the group highlight its vast potential. As the UK wealth management industry is worth £10 trillion, the firm could consider approaching the London public market for growth capital in the near future.

On a similar note, SHL Medical is positioned to capitalise on the growing demand for weight loss drugs such as Ozempic and Wegovy. The company, valued at $3.4 billion, specialises in developing proprietary drug delivery systems. Its expansion in Europe, Asia, and the US, coupled with strong intellectual property rights, makes it an attractive candidate for a high-profile listing.

Flender, the German manufacturer of drive systems used in wind power turbines and cable cars, is another name circulating in the market. Acquired by Carlyle Group for €2 billion in 2021, it is now reportedly valued at €4 billion. With London’s historic strength in hosting manufacturing businesses, the city could provide a fitting platform for Flender’s potential IPO.

Breitling, the luxury Swiss watchmaker, also remains a prospect for a high-profile float. With a valuation of $4.5 billion and a range of products that attract celebrities like Brad Pitt and Erling Haaland, the brand’s future public listing could capture significant investor interest. CVC, which owns a stake in Breitling, is reportedly exploring its exit strategies, making the listing a possibility in the coming years.

The private equity sector’s increasing reliance on IPOs to monetise their investments underscores London’s potential to stage a comeback. While challenges remain, securing listings from high-growth, profitable companies would provide a much-needed boost to the city’s financial market.