London Stock Exchange poised for IPO rebound in 2026
After a long-winded exodus, London’s flagship stock exchange saw a flurry of IPO activity at the tail end of last year, with the exchange poised for further revival in 2026.
In the final quarter, the UK market saw 11 IPOs which raised £1.9bn, bringing the total number of listings for the year to 23.
This included tinned tuna giant Princes, and The Beauty Tech Group, which has seen its share price jump 6.2 per cent to 290p in the last month.
The nine listings on the main market and 12 on AIM raised roughly £2.1bn over the course of the 2025, a staggering 170 per cent year on year increase from the £777.7m recorded the prior year.
But despite the sharp rise in revenue, IPO activity remained historically muted, with the final quarter listings primarily responsible for the jump.
Scott McCubbin, EY-Parthenon UK IPO leader, said: “After a turbulent start to 2025, marked by heightened geopolitical uncertainty and volatile market reactions to the introduction of trade tariffs, IPO activity gathered momentum towards the end of the year.
“The final quarter saw a notable acceleration in listings as companies moved ahead with postponed floatation plans, encouraged by stabilising market conditions and improving investor sentiment.”
Shaking off the cobwebs
Despite the subdued revenue in 2025, analysts predict that London’s IPO pipeline will see an uptick of activity in the first half of the year, off the back of recent reforms to the UK’s listing regime introduced in the Autumn Budget.
Chancellor Rachel Reeves unveiled a stamp duty exemption on shares of newly listed companies, in her bid to get more companies to list on the London market and encourage more Brits to invest domestically.
The Treasury’s plans have seen the 0.5 per cent charge paid by investors when purchasing shares in newly listed companies for the three years following their IPO be scrapped.
The move was highly anticipated across the City in hopes it will revitalise the ailing market and attract listings which had been lost to overseas markets who had more favourable conditions, in particular New York.
The decision was also welcomed by the exchange itself, with LSE deputy chief executive Charlie Walker hailing it “the first sort of meaningful change” seen in a long time.
Shaky deal landscape
While market sentiment continues to improve, the deal landscape itself remains uncertain, as concerns surrounding inflation and geopolitical tensions persist.
Analysts have also noted that investors have become more selective, opting for quality companies which demonstrate clear profitability roadmaps and resilient business models, over investing in a vast number of companies
McCubbin said: Businesses considering an IPO should ensure they prioritise careful market timing, demonstrate operational resilience and present a compelling equity story to attract investor interest.”
Global IPOs
The global IPO market also showed signs of stabilising in 2025, with a total 1,293 companies going public which raised $171.8bn (£126.8bn).
The Middle East, India and Africa led the boom, accounting for 42 per cent of all transactions, while Asia-Pacific dominated in terms of capital raised, securing 43 per cent of global IPO proceeds.
India received the largest number of deals, recording 367 IPOs, closely followed by China which saw 222 new floats.
Grant Humphrey, partner at EY-Parthenon, said: “Sentiment across the global IPO markets has improved over the course of 2025, supported by strengthening macroeconomic indicators, increased predictability in monetary policy and a broader base of investor demand.
“If market volatility remains contained, the foundations laid in 2025 could underpin a meaningful expansion of IPO activity.”