- Average return from UK IPOs in 2024 was 36%
- Nine out of 16 IPOs delivered positive returns in the year
- Rosebank Industries was the best performing IPO
- GenIP was the worst performing IPO
“UK IPOs might have been thin on the ground in 2024 but the average return was very tasty at 36%. Seven of the 16 stock market flotations produced double-digit returns and two companies even doubled or tripled investors’ money,” says Dan Coatsworth, investment analyst at AJ Bell.
“This type of performance is exactly what’s needed to tempt companies sitting on the fence over whether to list in London or not. It implies investors are eager and willing to back companies with a decent story and the right qualities to shine over the longer term.
“Combine the 2024 IPO performance figures with recent changes to the listing rules and you’ve got a strong sales pitch to help bring in more companies and start to refill the pot of stocks on the London market lost to takeovers, voluntary delistings and transferring their primary listing to a foreign exchange.
Why Rosebank shares soared in 2024
“Rosebank Industries was the standout performer among 2024’s UK IPOs which is quite astonishing given its only assets are cash. The company raised £50 million at IPO yet its value had soared to £175 million by the end of 2024, driven by market excitement about management repeating the success they had with Melrose.
“Rosebank’s team are looking to emulate the ‘buy, improve and sell’ model of Melrose. Striking gold twice is not guaranteed but investors are clearly enamoured by the team’s past success. Melrose was valued at £13 million when it joined the stock market in 2003 and hit a peak valuation of £12 billion in 2020.
“There has been no news from Rosebank since listing – we don’t know if it has found a suitable acquisition and there is no news of when it will come back to the market to raise more cash. That hasn’t put investors off the stock as the price has continued to move higher.
Other winners and losers among UK IPOs last year
“IPO stocks often follow the same pattern of jumping in the first few weeks of trading as investors get excited about a story. Subsequently, the share price often pulls back as short-term traders book profit, only to then move higher as longer-term investors slide in. Microsalt’s share price followed that pattern, more than trebling in just a few months before easing back and then moving up again.
“Raspberry Pi surged straight out the gate and has barely stopped to catch its breath, delivering a 123% gain in 2024.
“One of the last IPOs to float in 2024 was Asian gaming specialist Winking Studios which raised a slug of cash to support expansion into Western markets. Investors lapped up the shares, sending the stock up 73% by the end of the year.
“Three IPOs were sitting deeply in the red including GenIP which ended the year down by a third since floating in October. This is noteworthy given that AI is at the centre of its business model, suggesting the company might have missed the boat with regards to investor frenzy around all things linked with artificial intelligence. While the shares have started to move higher since the start of 2025, revenue is tiny so investors are having to buy on hope.”
