KPMG has indicated that senior executives in the UK financial services sector are showing renewed optimism about London’s prospects as a hub for initial public offerings, with a strong majority believing that any market rebound this year will prove enduring rather than fleeting. According to research from KPMG, 80 per cent of these leaders are convinced that the expected revival in London’s IPO activity for 2026 will hold steady well beyond the immediate future, signaling a shift in sentiment after years of subdued listings.
The survey, carried out by Opinium between 23 February and 4 March 2026 among more than 150 director-level and above professionals in financial services firms, reveals improving confidence in the capital’s appeal.
Nearly seven in ten respondents indicated that UK-based or UK-headquartered companies are either actively prioritising or frequently evaluating London as a listing destination.
For international firms, the figure stands at 62 per cent, while 57 per cent noted that investors deploying capital into IPOs are similarly leaning towards or regularly considering the city.
Yet the outlook is far from unclouded. Industry professionals have identified several formidable obstacles that could derail this momentum.
The leading concern, cited by 23 per cent, remains global economic or geopolitical instability.
Close behind are fears over more adaptable or internationally integrated listing options from competing exchanges—such as dual-class share structures—mentioned by 17 per cent, followed by persistent valuation disparities compared with other major venues at 14 per cent.
Reforms appear to be gaining traction in bolstering sentiment.
Almost seven in ten executives believe the UK is advancing financial services changes at a sufficient pace to sway current listing decisions, while 72 per cent expect the government’s three-year stamp duty relief for fresh IPOs to meaningfully enhance London’s standing as a global listing center.
Nevertheless, structural drawbacks persist: a third of respondents pointed to the UK’s tax regime as a primary reason boards bypass London, with 29 per cent highlighting listing complexities and costs, and 27 per cent each flagging limited engagement from domestic institutional and pension investors or relative economic and political stability.
Beyond pure transaction volumes, success this year will hinge on other metrics, leaders emphasized.
Stronger after-market share performance, a rise in cross-border listings, and an enhanced worldwide image of the market topped their definitions of achievement.
Nearly two-thirds voiced worries about London’s international reputation, and over six in ten agreed that public discourse places excessive weight on the London Stock Exchange’s performance at the expense of the City’s broader function as a financial powerhouse.
A clear majority dismissed as overstated the notion that “the City is dying and requires revival”. London’s competitive edges lie elsewhere.
Executives ranked its dynamic innovation ecosystem—particularly in artificial intelligence and fintech—as the standout strength, ahead of its robust regulatory framework and extensive global connectivity.
An overwhelming 72 per cent named London Europe’s premier financial centre, far outpacing Frankfurt, Paris, and Luxembourg.
Nearly 80 per cent expressed confidence that the City will preserve its status as a leading global financial hub over the next three years.
Svetlana Marriot, Head of Capital Markets Advisory at KPMG UK, captured the delicate balance: the sector’s faith in a lasting recovery coexists with acute awareness of worldwide volatility and intensifying rivalry from other venues.
Recent policy steps are building momentum, she noted, but sustained progress demands geopolitical calm and continued allure for both home-grown and overseas issuers.
Karim Haji, Global and UK Head of Financial Services at KPMG, shared remarks on this development as well.
While equity markets often dominate comparisons between financial centers, London’s true power lies in its innovation, collaborative regulatory environment, and role as the world’s insurance capital—assets that have weathered countless shocks throughout history.
Initiatives like the Mansion House Accord, committing pension funds to domestic investment, further underscore the UK’s capacity to attract capital. KPMG has concluded that the findings paint a picture of cautious optimism. London’s IPO pipeline shows potential, backed by regulatory developments, yet thriving will require navigating turbulence and amplifying the City’s multifaceted strengths.