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The London stock market saw just five listings, raising £359.8m, in the third quarter of 2023 according to data from EY.
EY stated that this was a result of challenging market conditions that continued to dampen IPO activity.
Furthermore, proceeds fell by 36% when compared with the same period in 2022 when eight issuers raised £565.5m.
Of the five IPOs in Q3 2023, the main market listed two IPOs which raised £346.5m in total, whilst the Alternative Investment Market (AIM) saw three admissions raising £13.3m.
The largest in the period was the CAB Payments IPO which raised £291.5m.
Over the first three quarters of 2023, 23 companies listed in the UK, raising £953m, compared with 34 IPOs raising £1.16bn over the same period in 2022.
Scott McCubbin, EY UKI IPO leader, said: “Challenging market conditions, compounded by high inflation and rising interest rates, have meant IPO activity has continued to face obstacles.
“However, there are reasons to be positive – several companies which had delayed their IPOs earlier this year are now making plans to be ‘IPO ready’ for when headwinds ease. Furthermore, there is an uptick in activity in the US IPO market, which normally has a positive knock-on impact in other markets, so we anticipate a rebound in activity in 2024.”
He added: “Despite subdued activity levels, London still has the fundamentals required to be an attractive global destination to list, including an exceptionally strong financial advisory sector, a well-regulated stock exchange and a liquid investor base.
“The FCA’s review into simplifying the listings regime to help make London a more appealing destination for a wider range of companies is a welcome step, however it is important that we strike the right balance between reducing red tape while continuing to safeguard protections for investors and other stakeholders.”
