London’s struggling stock market received a much-needed boost on Thursday after small business lender Shawbrook made a strong debut, marking the city’s biggest listing in four years.
Shares in Shawbrook rose as much as 8.2% on their first day of trading, climbing to 400.5p after being priced at 370p per share in its initial public offering (IPO). The debut values the specialist bank at £1.9bn, signalling renewed investor appetite for London-listed companies after years of subdued activity.
“There’s renewed optimism in the UK market,” said Tom Johnson of Barclays, which helped manage the listing. “Investors remain engaged and we’ve seen plenty of interest internationally from the US and Europe. This momentum could help unlock a wave of listings in 2026 — London remains the default choice for many domestic companies.”
Revival for London’s IPO market
Shawbrook’s float represents a rare bright spot for the capital’s stock exchange, which has struggled to attract major listings since 2020. Earlier this year, London fell out of the world’s top 20 markets for IPO activity, as companies increasingly chose New York or Amsterdam to list their shares.
However, recent weeks have hinted at a rebound. In addition to Shawbrook, Beauty Tech Group, a UK-based cosmetics specialist, floated earlier this month, while Princes Group, the Liverpool-based food producer best known for its tinned tuna, is preparing for a £1.2bn listing.
Market analysts say Shawbrook’s successful debut could encourage other UK firms — particularly private equity-backed businesses — to revisit delayed flotation plans.
A return to public markets
The listing marks Shawbrook’s return to the stock exchange seven years after it was taken private by BC Partners and Pollen Street Capital in a £900m deal in 2017.
Chief executive Marcelino Castrillo said the bank’s return to the public markets reflected its confidence in the UK’s financial sector and its own long-term growth prospects.
“We’re proud to be listing in London, our home market,” Mr Castrillo said. “We’ve built scale across diverse, attractive markets and, following significant investment under private ownership, we’re well placed to keep growing as we support UK businesses and households.”
Shawbrook plans to raise £50m through the sale of new shares. Its loan book stood at £18.3bn at the end of September, up from £17bn in June, and the bank aims to nearly double that to £30bn by 2030.
Confidence returning to City investors
Market observers view Shawbrook’s listing as a symbolic moment for the London Stock Exchange, which has faced growing concern over its ability to compete with overseas rivals.
“This IPO sends an important message that London can still attract serious companies and international investors,” said analyst Sarah Wilson of City research firm Manifest. “If upcoming listings perform well, it could mark the start of a much-needed turnaround.”
