The London Stock Exchange saw a flurry of IPO activity in the final quarter of 2025 as it positioned itself for a rebound in 2026.
There were 11 IPOs in the UK in Q4 2025 raising £1.9bn. This brought the total number of listings in 2025 to 23 – nine on the main market and 14 on the Alternative Investment Market (AIM).
In total, proceeds of £2.1bn were raised in 2025, a 170% year-on-year (YOY) increase on the £777.7m raised from 18 issuers in 2024. Despite the increase in activity, IPOs remain low when compared to historic levels.
Scott McCubbin, EY-Parthenon UKI 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.
“Looking ahead, the pipeline of prospective IPOs remains strong, supporting expectations of a renewed uptick in activity in the first half of 2026. Recent reforms to the UK’s listing regime are beginning to have a tangible impact, improving market accessibility and issuer confidence. These changes have been further reinforced by measures announced in the Chancellor’s Autumn Budget, including the introduction of a three-year stamp duty exemption for newly listed companies on the London Stock Exchange which will help to strengthen the UK’s competitive position as a global listing venue.
“While market sentiment continues to improve and the long-term outlook indicates a steady recovery in 2026, the deal landscape remains uncertain. 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 IPO market saw a recovery in 2025 with proceeds up by 39% YOY
Despite persistent market volatility driven by geopolitical tensions, trade and tariff risks and ongoing debate over AI-related valuations, the global IPO market showed clear signs of stabilisation in 2025, accompanied by a marked recovery in investor confidence.
A total of 1,293 companies went public worldwide, raising US$171.8bn – a 39% YOY increase in proceeds.
Regionally, the Europe, Middle East, India and Africa (EMEIA) led global IPO activity by volume, accounting for 42% of all transactions. Asia-Pacific dominated in terms of capital raised, securing 43% of global IPO proceeds, driven largely by robust activity in Hong Kong and sustained strength in the Chinese mainland’s pipeline.
At a country level, India emerged as the leader by number of deals, recording 367 IPOs in 2025, followed by the US (223) and the Chinese mainland (222). Greater China was the largest market by proceeds raising $54.8bn, followed by the US ($45.5bn), which continued to attract foreign issuers seeking access to its deep and liquid capital markets.
By sector, industrials (22%) and technology, media and telecommunications (TMT) (21%) accounted for the largest share of global IPO proceeds in 2025. In the US, TMT was particularly dominant, representing nearly 40% of proceeds, reflecting strong demand for companies supporting AI infrastructure. European IPO activity displayed a more diversified sector profile, spanning industrials, financial services, real estate and hospitality and consumer sectors. In Asia-Pacific, large listings were concentrated among issuers developing AI-enabled systems across robotics, mobility and industrial applications.
Grant Humphrey, EY-Parthenon Partner, 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. A diverse international pipeline is emerging, with a growing number of large-cap, sponsor-backed and cross-border-ready companies preparing for potential listings. If market volatility remains contained, the foundations laid in 2025 could underpin a meaningful expansion of IPO activity in 2026.”