Following a tumultuous period for the London Stock Exchange, the Financial Conduct Authority (FCA) is exploring new avenues to invigorate the initial public offering (IPO) market.
At the London Stock Exchange’s annual IPO Forum last week, the City regulator informed industry stakeholders of its intention to “put the P back into IPO,” according to sources present at the event, as reported by City AM.
The exclusive gathering brings together companies aspiring to go public, offering guidance on navigating the IPO process.
The FCA emphasized to attendees that incorporating retail investors is central to its mission of implementing a “whole system approach” to public listings.
These proposed reforms come as City firms increasingly urge for broader access to equity and bond markets for individual investors.
Jim Moran, the FCA’s head of listing, stated: “Our changes to prospectus rules will make it easier for companies to raise money on public markets and grow.”
“We’re proposing to get rid of the ‘six day rule’, which added extra time to an IPO if it were offered to the public, to remove barriers for firms and open up participation in IPOs.”
London Stock Exchange suffered a bruising 2024
This regulatory overhaul follows a dismal 2024 for the London Stock Exchange, with LSEG data revealing that 88 companies, including notable names like Darktrace and Flutter, either delisted or transferred their primary listing away from London’s main market. In contrast, only 18 firms joined the exchange during the same period.
In April 2025, the UK market saw a surge in takeover activity with takeovers outnumbering listings at a rate of three to one, as 15 companies received bids while only four opted for initial public offerings.
Dame Julia Hoggett, the chief executive of the London Stock Exchange Group, made a strong case for the UK to reform its “perverse” stance on retail investment during her February appearance on the Following the Rules podcast.
Hoggett contended that it should be “much more straightforward” for everyday investors to get involved in these markets, which could potentially reduce the cost of capital for businesses and stimulate growth.
Amidst this backdrop, Retailbook, an investment platform designed to grant retail investors access to shares usually exclusive to institutional investors, announced on Monday that it had successfully completed a £4.5m fundraising round led by Augmentum Fintech.
Speaking to City AM, James Deal, co-chief executive of Retailbook, declared: “The summer of 2025 will be seen as a pivotal time of fruition for UK Capital markets.”
Deal elaborated: “A large part of these reforms will enable retail and wealth investors true access to UK public markets, for the first time in decades. “.
He further emphasised Retailbook’s commitment to this vision, stating: “At Retailbook we are driving and delivering on that agenda, leading the way to reignite retail capital into our primary markets.”
