Octopus Energy is preparing to spin off its technology division, Kraken, which has been valued at £6.4 billion, igniting a competitive race between London and the United States for a significant stock market listing. The announcement follows Octopus’s agreement to sell a minority stake worth £740 million to a consortium of investors that includes D1 Capital Partners, Fidelity, and a unit of the Ontario Teachers’ Pension Plan.
The chief executive of Octopus Energy, Greg Jackson, expressed optimism about Kraken’s potential floatation, noting that the decision on where to list—between London and the US—will be crucial. Jackson stated on BBC Radio 4’s Today programme, “For large tech companies such as Kraken, it’s going to be between London and the US. I really hope it’s London.” He emphasized the importance of demonstrating the appeal of the London exchange to attract a global investor base.
Implications of the Potential Floatation
A listing for Kraken in London would mark a significant event for the UK’s stock market, particularly as it seeks to recover from a prolonged period with limited initial public offerings (IPOs). Octopus Energy’s technology unit provides AI solutions to energy companies, enabling them to streamline operations related to customer billing, smart meters, and electric vehicle charging. Currently, Kraken manages over 70 million energy accounts for clients, including EDF and TalkTalk.
Despite positive signs in the UK stock market, the competition for Kraken’s listing is intense. Dan Coatsworth, head of markets at AJ Bell, stated that while the UK market is eager for innovative tech companies like Kraken, convincing the board to choose London may be challenging. He pointed out that the investors involved in Kraken’s recent funding round are likely aware of the valuation differences between UK and US markets.
The potential floatation comes at a time when Octopus Energy reported an annual loss of £260.1 million for the year ending April 30, largely attributed to an exceptionally warm spring that reduced demand for gas and electricity by approximately £103 million.
Stock Market Trends and Future Prospects
The UK stock market has experienced its strongest year for IPOs since 2021, raising £1.9 billion through 11 listings in 2025. This revival has generated optimism that more companies, such as the RAC, Waterstones, and Revolut, may consider floating in London next year. According to a report by PwC UK, the final quarter of 2025 alone accounted for £1.3 billion of the total raised.
Vhernie Manickavasagar of PwC UK commented on the future landscape, stating, “Looking ahead, momentum is set to continue into 2026, with a robust pipeline of IPOs expected.”
As Octopus Energy navigates this pivotal moment, the outcome of Kraken’s potential stock market debut will not only impact the company but also serve as a litmus test for the attractiveness of the UK’s financial markets in a global context.
