London to fight US for Octopus spin off: Energy giant's tech unit Kraken valued at £6.4bn ahead of bumper stock market listing
Octopus Energy’s plan to spin off its technology business has sparked a transatlantic battle for a bumper stock market listing.The boss of Britain’s largest domestic energy supplier said there was ‘every chance’ Kraken would float – and it would be a choice ‘between London and the US’.It comes after Octopus agreed to sell a £740million minority stake in Kraken to a syndicate of investors including D1 Capital Partners, Fidelity and a unit of the Ontario Teachers’ Pension Plan. The deal valued Kraken at £6.4billion – enough to see it join the FTSE 100 index should it list in London. Octopus will retain a 13.7 per cent stake in Kraken once it has been de-merged.Kraken sells AI technology to energy companies to help them to manage customer billing, smart meters and electric vehicle charging. It connects more than 70million household and business energy accounts through clients including EDF and TalkTalk, as well as Octopus. Float: Octopus chief exec Greg Jackson (pictured) said London would be his preferred location for a listing – but gave no assurancesA share listing in London would be a major boost for the City amid signs of a stock market revival following a dearth of so-called ‘initial public offerings’ (IPOs) in recent years.Octopus chief executive Greg Jackson yesterday told 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. The thing about Kraken is we’ve got this global investor base. And so really the stock exchanges have got to show why they are the right one for a business like this.’Talk of a float came as Octopus posted a £260.1million annual loss for the year to April 30 as it said an ‘exceptionally warm spring’ hit demand for gas and electricity to the tune of about £103million.Dan Coatsworth, head of markets at AJ Bell, said Britain’s stock market was ‘crying out for something like Kraken – a British tech business going places’.But he said the City may have a ‘tough job’ convincing the board not to opt for the US, adding: ‘The syndicate of investors who have just bought a slice of Kraken includes three big names based in North America and they will be fully aware of the valuation differential between the UK and US stock markets.’ Best year for listings since 2021 London has clocked up its best year for stock market listings since 2021 – but still only managed to attract a handful of new firms.A PwC report shows £1.9billion was raised through 11 ‘initial public offerings’ (IPOs) in 2025 – fuelling hopes of a much-needed revival. Some £1.3billion of that was raised in the final quarter – with fintech bank Shawbrook among those listing their shares in London. It is hoped companies such as the RAC, Waterstones and Revolut may float in London next year.PwC UK’s Vhernie Manickavasagar said: ‘Looking ahead, momentum is set to continue into 2026, with a robust pipeline of IPOs expected.’ DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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London to fight US for Octopus spin off: Energy giant's tech unit Kraken valued at £6.4bn ahead of bumper stock market listing
