Breakingviews - Disappointing tuna launch dampens London IPO excitement

IPO Performance: The recent $1.5 billion IPO of Princes Group in London has underperformed, with shares slipping 1% despite being priced at a discount, highlighting ongoing challenges in attracting investors to UK listings.

Market Context: The UK IPO market has raised only $1.8 billion in 2025, significantly lower than Europe and the US, indicating a lack of domestic demand and liquidity for new floats.

Investor Sentiment: British pension funds have drastically reduced their investments in UK equities, now holding only 4.4% of their assets in local stocks, compared to over 50% 25 years ago.

Future Outlook: While potential high-value IPOs like Visma and Navoi Mining may improve market conditions next year, deeper reforms are necessary to enhance domestic share ownership and investor participation.