US markets have dominated global IPO activity in recent years, attracting European companies with greater liquidity, higher valuations, and more extensive analyst coverage. London, Frankfurt, and Paris have struggled to compete, with London raising only $208 million in the first half of 2025, according to Dealogic. This is the weakest performance in thirty years.

The trend, however, is now being challenged. As US valuations appear excessive, Europe is being seen by some institutions and corporates as a more credible option. Regulatory reforms are streamlining listing requirements, easing free float rules, and introducing tax incentives. High-profile names such as Monzo and Visma are considering London flotations that could bring more than £30 billion in market capitalization to European exchanges and Revolut is now considering a dual listing in London and New York. Ensuring these IPOs proceed on this side of the Atlantic will be critical to encouraging confidence in European markets.

Choosing where to list is no longer solely a valuation question. A European IPO can provide proximity to customers, regulators, and long-term institutional investors who favour stability over short-term trading. It also reduces exposure to US litigation and compliance burdens, which can become onerous when combined with domestic regulatory requirements.

For Europe’s IPO revival to endure, reforms must continue and exchanges need to deepen liquidity for mid-market companies. If Europe and the UK can attract a handful of strong IPOs, it will go a long way toward rebuilding issuer and investor confidence. Companies may then find European listings once again to be a compelling route to growth, supported by investors who understand their markets and strategies.

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