- Princes Group confirms intention to list on UK stock market
- Beauty Tech shares rise on its first day of dealings
- 10.9% average return on 2025’s UK IPOs year-to-date
- Who might be next to float in London?
Dan Coatsworth, head of markets at AJ Bell, comments:
“The UK stock market has been starved of new blood in recent years, with IPOs being thin on the ground. It’s therefore encouraging to see activity levels start to pick up. Investors are keen for new stock ideas and two new listings have the potential to grab the market’s attention.
“Food group Princes is well known in the UK, with its eponymous tinned tuna and Napolina tomatoes and pasta, as well as Branston pickle and Flora margarine sold under brand licencing agreements. Its products are mainstays of a weekly grocery shop when consumers are feeling flush. However, they are at risk of being substituted by supermarket own-brand products when times are harder.
“Rachel Reeves’ November Budget has the potential to bring bad news for consumers and businesses if the tax system is tweaked to help fill a black hole in the public finances. Confidence levels could be knocked and spending curbed. Princes could be the victim of grocery product substitution, and that would be a terrible start to life as a UK listed entity.
“In the longer term there are reasons why certain people might still find the company attractive. Princes has a clear growth plan, which includes pushing harder on Italian food, expanding its oil range, diversifying its seafood offering, doing more in the drinks market, and entering new areas such as infant nutrition and free-from products.
“A company with energy and brand strength is exactly what the UK stock market needs. Princes now must deliver on its ambitions, otherwise it could be left sitting on the shelf as far as investors are concerned. The IPO is expected to happen later this year.”
Beauty Tech IPO goes live
“Beauty Tech has made its stock market debut, rising 5% in early trading. That’s an encouraging start, particularly for a smaller company given the lower end of the market cap spectrum has been out of favour with investors for some time.
“The company had set an IPO range of 251p to 291p and the final price was bang in the middle at 271p. Within the first 30 minutes of trading, the share price had moved up to 285.2p. The challenge is to sustain that momentum.
“Beauty Tech provides investors with a way to play the latest trends in skin treatment. LED masks are all the rage among social media influencers and this company is one in a growing line of players capitalising on this trend.
“It has various red light therapy devices, hair removal lasers, and other skin treatment tech. Beauty Tech has a compelling narrative but there is plenty of competition in this space.”
Performance of UK IPOs year-to-date
“Someone who bought every one of the 12 UK IPOs so far in 2025 (excluding Beauty Tech) would have made a 10.9% average return, according to analysis by AJ Bell. That’s in line with what you might expect from new listings.
“IPOs are typically priced 10% to 20% below their intrinsic value to help attract investors. The IPO ‘bump’ that often happens when a company lists their shares is effectively the reward for taking the risk of backing an entity that has yet to deal with the trials and tribulations of being on the stock market. Being listed might raise a company’s profile, but it can also put pressure on management as their every move is watched by investors.
“The best performing IPO so far in 2025 has been Medpal AI, which has more than doubled investors’ money for those lucky to get in on day one. The worst performer is RC Fornax, the first UK IPO of the year and the most disappointing with a 62.3% loss versus the listing price.”
Who might be next to float in London?
“Potential candidates to list in the UK over the coming months and in 2026 include chemist Boots, card reader provider SumUp, software provider Visma, lender Shawbrook, and online travel agent Loveholidays.”
