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Initial public offering (IPO) activity in the UK remained muted in the third quarter of 2025, with only three new listings on the London Stock Exchange, according to EY.
Despite the slow pace, sentiment is improving as a stronger pipeline for early 2026 points to a possible rebound in the next six to 12 months.
Between July and September there were three flotations on AIM, raising £16.3m in total. Across the year to date, 12 companies have listed on the main market and AIM, raising almost £200m, down 65.6% from the £579m raised during the same period in 2024.
Scott McCubbin, UK and Ireland IPO leader at EY-Parthenon, said: “The UK IPO market has largely remained in ‘wait and see’ mode throughout 2025, as companies navigate the repercussions of prolonged geopolitical and macroeconomic instability. However, we are starting to see a shift in sentiment with several large IPOs already confirmed this month.
“Momentum is now building and the IPO pipeline for the next six to 12 months is strengthening as market conditions improve, with prospective companies keen to move when the pricing window opens.”
McCubbin added that London’s depth of capital, international investor base and strong analyst ecosystem continued to support its appeal as a listing venue, despite growing global competition.
He said: “The outlook for the remainder of the year will be shaped by how companies navigate competition between private and public markets and the backdrop of geopolitical uncertainty – with timing and pricing remaining the decisive factors for successful listings.”
Meanwhile, global IPO activity showed signs of recovery in the third quarter, with 370 deals raising about $48.2bn (£36bn).
Volumes rose 19% and proceeds were up 89% year-on-year, reflecting renewed investor confidence amid monetary easing and improved market sentiment.
The US, Greater China and India accounted for most of the world’s largest flotations, with nine of the top 10 IPOs coming from these markets. The US recorded its strongest IPO quarter since late 2021, raising $15.8bn (£11.8bn), while India achieved 146 deals worth $7.2bn (£5.4bn), marking increases of 32% and 54% respectively.
EY said the global pipeline is expanding, particularly in real estate, hospitality, construction, industrials, consumer and energy sectors, although technology, media and telecommunications continues to dominate by volume, representing 28% of IPO candidates.
