Lazard banker predicts renewed wave of London IPOs in 2026

Cyrus Kapadia, head of Lazard’s UK investment banking, forecasts a significant resurgence of large and mid-sized London IPOs in 2026, driven by private equity-backed companies outgrowing their current ownership and a diminishing appeal of Wall Street listings. He highlighted several firms valued over $10 billion, including NMMC, Visma, Revolut, and Monzo, as potential candidates, noting that London is increasingly viewed as their 'natural destination' due to easing listing rules and a fading perception of universally higher US valuations for these types of companies.

Analysis

Cyrus Kapadia, head of Lazard's UK investment banking, forecasts a significant resurgence of London IPOs in 2026, driven by private equity-backed firms seeking liquidity and a diminishing appeal of Wall Street listings. This shift is attributed to companies outgrowing private ownership and London's evolving regulatory environment, which includes easing listing rules.

The anticipated pipeline includes several firms valued over $10 billion, such as Uzbekistan's gold miner NMMC, Norwegian software group Visma, and UK fintechs Revolut and Monzo, indicating a diverse range of sectors. Kapadia highlights London as their "natural destination," suggesting a strategic advantage for the LSE in attracting large-scale listings previously eyeing US markets.

This predicted wave follows a slump in listings since 2021 and could re-establish London's competitiveness, particularly for mid-sized UK companies that attract limited attention from US investors. While Kapadia remains a "net optimist," the success hinges on sustained private equity growth and London's ability to deliver competitive valuations against global alternatives.

Key Decisions for Investors

• Investors should closely monitor the developing London IPO pipeline for 2026, particularly for large, private equity-backed companies in fintech, software, and commodities, as these could offer significant new investment opportunities.
• Evaluate the implications of easing London listing rules and the potential for improved valuations, considering a strategic re-allocation to UK-focused growth equity or pre-IPO funds.
• Consider the potential positive impact on Lazard's (LAZ) advisory fees and market share, given its prominent role as a top European IPO adviser in a revitalized IPO landscape.