London’s IPO activity remained subdued in the third quarter of 2025, yet improved market sentiment and a strong 2026 IPO pipeline suggest growing confidence in the capital’s flagship index. Between July and September, only three listings occurred on London’s secondary AIM market, raising £16.3 million, according to EY-Parthenon’s market tracker. Overall, there were just 12 listings on both the main market and AIM in 2025, raising nearly £200 million, a 65.6% decrease from the £579 million raised during the same period in 2024. This decline is attributed to broader economic and geopolitical uncertainties, prompting investors to hoard cash rather than invest in stocks.
However, momentum is beginning to shift, with several companies recently announcing IPO intentions, enhancing London’s appeal as a listing venue. Princes, a major tinned tuna producer, declared its intention to float on London’s index, while Beauty Tech Group priced its IPO at 271p per share, valuing the company at approximately £300 million. Specialist lender Shawbrook also confirmed listing plans, and speculation about potential floats from Boots and estate agents Loveholidays is intensifying.
Scot McCubbins, EY-Parthenon UKI IPO leader, stated: “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. 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.” McCubbins highlighted London’s “depth of capital, international investor base and strong analyst ecosystem” as factors making the market increasingly attractive, while noting that “timing and pricing” will be crucial for successful listings.
Globally, the IPO market showed signs of recovery in Q3, with 370 deals raising approximately $48.2 billion (£35.9 billion). Deal volume increased by 19%, while proceeds rose by 89% year-on-year, indicating a rebound in investor appetite driven by monetary easing and improving market sentiment. The first nine months of the year saw 914 IPOs raise $110.1 billion. The US, India, and Greater China recorded strong momentum, with nine of the top 10 global IPOs originating from these markets. The US achieved its strongest IPO quarter since late 2021, raising $15.8 billion, while India raised $7.2 billion from 146 IPOs.
Elsewhere, the number of private equity-backed IPOs more than doubled in the first three quarters of the year, with proceeds rising by 68%. Private equity firms increasingly view IPOs as a viable exit route, supported by global monetary easing, rallies in major equity benchmarks, and regulatory tailwinds benefiting high-growth sectors, including industrials, life sciences, energy, and technology.
Grant Humphrey, Partner at EY-Parthenon, commented: “Private equity sponsors are turning to IPOs as a viable route to market, with PE-backed listings more than doubling year-on-year across key regions such as the US, Greater China, and the Nordics. The breadth of activity across sectors underscores sustained investor appetite for high-quality assets, particularly in industries undergoing rapid digital transformation and AI-driven growth. Well-prepared issuers with strong financials, robust governance, and dual-track strategies will be best positioned to seize opportunities as IPO pipelines continue to rebuild globally.”
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