UK IPO market stalls amid Trump tariff uncertainty
The number of IPOs on the London Stock Exchange stalled in the first quarter of 2025 as listings raised just £74.7m, a 74 per cent decline from last year.
In total, there were five new lPOs in the first three months of the year, two on the main market and three on junior stock exchange AIM, according to data from EY.
Despite this, London’s equity market activity remained relatively strong, thanks to significant secondary sell-downs, rights issues and demerger plans.
Notable transactions in the first quarter included Haleon’s £2.5bn sell-down, Penon’s £490m rights issue and Brooks Macdonald‘s move up from AIM to the Main Market of the LSE.
Latest data from the London Stock Exchange shows that total equity capital raised on British markets has reached £7.3bn so far in 2025.
“The IPO market thrives on stability, but ongoing macroeconomic and geopolitical instability continues to subdue listing activity in the UK,” said EY UK IPO leader Scott McCubbin.
“Following the announcement of US trade tariffs, we’ve seen market volatility grow to levels not seen since the COVID pandemic.
“Companies considering an IPO must now weigh the risks of listing in such turbulent conditions, alongside rising input costs.”
IPO market stalls amid tariffs
In the run-up to Trump unveiling his sweeping tariffs that set off market chaos, reports emerged of IPOs in the UK and US being put on hold as a result of the market chaos.
Last week, Buy Now Pay Later company Klarna paused its IPO thanks to the tariffs, after planning to launch on the New York Stock Exchange later this month.
Klarna’s IPO had been hailed as a “signal of wider fintech recovery,” but along with trading platform Etoro, the firm has decided to hold off on a float until the market turmoil ends.
Other planned IPOs in the US that have been delayed include surgical products company Medline, which had planned to file publicly last week, and ticket company Stubhub.
In the UK, the private equity owners of Shawbrook Bank had delayed plans for a £2bn London listing to the second half of the year, while fast fashion giant Shein has reportedly delayed kicking off the process to list in London.
Despite some delays, the US actually led the way on the recovery of the global IPO market in the first quarter, reaching its third strongest first quarter performance on record with 59 listings raising proceeds of £8.9bn.
In contrast, IPO activity in the Chinese mainland and Oceania remain subdued, though Japan managed the largest global IPO in the quarter.