The Financial Conduct Authority (FCA) has introduced new reforms to simplify the UK initial public offering (IPO) process.

The changes, which came into force immediately on 5 August, remove the mandatory seven-day waiting period before connected analyst research can be published during an IPO and simplify information-sharing requirements between issuers, advisers and investors.

The regulator said the reforms will reduce execution risk, lower compliance costs and make it easier for businesses to access public markets while maintaining high standards of market integrity and investor protection.

The latest measures build on the FCA's sweeping overhaul of UK listing rules introduced in 2024, the biggest reform of the regime in more than three decades, as policymakers
aim to make London a more attractive destination for companies seeking to raise capital and to reverse a prolonged decline in London's appeal relative to rival exchanges such as New York.

Jon Relleen, the FCA's director of infrastructure and exchanges, said: "'We want the UK market to be an attractive place for companies to raise capital and grow. By making the UK listing regime more efficient, we are supporting the growth and competitiveness of UK capital markets."

The reforms are expected to be welcomed by investment banks, advisers and listed companies, which have argued that unnecessary complexity has made UK IPOs more expensive and time-consuming. While the changes should streamline the listing process, IPO activity will continue to depend largely on market valuations, investor demand and wider economic conditions.

London's stock market continues to face pressure from takeovers, delistings and companies relocating their primary listings overseas.

According to broker Peel Hunt, since the start of 2023, 154 UK-listed companies with a combined value of around £165bn have received takeover offers, while approximately £120bn of market capitalisation has left London through companies moving their primary listings abroad.

Over the same period, only 11 IPOs worth more than £100m have taken place, adding around £6bn in new market capitalisation.

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