London IPO activity remained subdued in the third quarter of 2025, but improved market sentiment and a strong 2026 IPO pipeline suggests confidence in the capital’s flagship index is beginning to grow.
Between July and September, there were just three listings on London’s secondary AIM market, raising £16.3m, according to EY-Parthenon’s market tracker.
Overall, there were only 12 listings on both the main market and AIM to date in 2025, raising almost £200m, down 65.6 per on the £579m raised during the same period in 2024, due to wider economic and geopolitical uncertainty and a move from investors to hoard cash rather than invest in stocks.
However, momentum is starting to shift, with numerous companies unveiling IPO intentions in the past week, boosting the capital’s appeal as a listing venue.
Tinned tuna giant, Princes, announced its intention to float on London’s index, while Beauty Tech Group priced its IPO at 271p per share, giving it a market value of roughly £300m.
Specialist lender Shawbrook also confirmed plans for a listing, while rumours on potential floats from Boots and estate agents Loveholidays have also grown.
Scot McCubbins, EY-Parthenon UKI IPO leader, 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.
“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 noted London’s “depth of capital, international investor base and strong analyst ecosystem” in making the market increasingly attractive, before acknowledging that “timing and pricing” will be the decisive factors for successful listings.
Global market recovery
However, the global IPO market as a whole showed signs of recovery in Q3, with 370 deals raising approximately $48.2bn (£35.9bn).
Deal volume also increased by 19 per cent, while proceeds were up 89 per cent year on year, signalling a rebound in investor appetite driven by monetary easing and improving market sentiment.
Overall, the first nine months of the year saw 914 IPOs raise $110.1bn.
The US, India and Greater China all recorded strong momentum in the quarter, with nine of the top 10 global IPOs coming from these markets.
The US also achieved its strongest IPO quarter since the final quarter of 2021, raising $15.8bn, while India raised $7.2bn from 146 IPOs.
Renewed private equity backing
Elsewhere, the number of private equity backed IPOs more than doubled in the first three quarters of the year, with proceeds rising by 68 per cent.
PE firms are increasingly favouring IPOs as a viable exit route, supported by global monetary easing, rallies in major equity benchmarks and regulatory tailwinds benefiting high-growth sectors.
This included industrials, life sciences, energy and technology.
Grant Humphrey, Partner, EY-Parthenon, said: “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.”