The UK government will take a £25 million stake in Octopus Energy's technology arm, Kraken. The investment is designed to persuade the tech business to list in London as it prepares for an IPO. This move aligns with broader efforts to bolster the capital's market appeal.

Kraken, a software platform for managing energy assets and customers, has been a key growth driver for Octopus. The government's direct equity play signals a strategic bet on domestic tech infrastructure. It also provides a potential vote of confidence ahead of a public offering.

London's stock exchange has faced challenges attracting tech listings, with many companies opting for New York. This stake could help keep Kraken's flotation on the UK's main market. Investors will watch for the company's valuation and IPO timeline, which could set a precedent for other domestic tech firms.