The London market for initial public offerings (IPOs) staged a tentative comeback in 2025, with a late-year surge in listings helping to lift annual fundraising to its highest level since 2024. However, activity remains significantly below historical norms, suggesting the recovery is still in its early stages.
A Year of Two Halves: Q4 Surge Drives Modest Growth
According to data compiled by S&P, a total of $1.9bn (£14.1bn) was raised through IPOs in London during 2025. This figure represents more than double the amount raised in the previous year. Crucially, the overwhelming majority of this capital – approximately $1.6bn – was generated in the fourth quarter alone.
This late flurry of activity has raised hopes that the City could be entering a more sustained period of growth for new listings. Prior to this uptick, London was at risk of falling out of the global top 20 venues for IPOs. Despite the positive momentum, the annual total remains far below the $10bn average seen between 2010 and 2025. Even the robust fourth-quarter figure was roughly one-third lower than the average quarterly haul over the past decade.
Main Market Outperforms Junior AIM Segment
The recovery was not uniform across London's trading venues. The London Stock Exchange's main market experienced a stronger rebound, with funds raised more than doubling to $1.7bn. In contrast, the junior AIM market, which caters to smaller companies, saw a weaker recovery, raising less than $200m. This is well short of its long-run annual average of around $1bn.
The tentative revival in London mirrored a broader global trend. Worldwide IPO issuance increased in 2025, supported by recovering markets in the United States and Asia. Globally, 1,014 IPOs raised $143.3bn, a 21 per cent increase in proceeds from the 984 listings that raised $118.1bn in 2024.
Optimism Builds for a More Active 2026 Cycle
Industry experts are cautiously optimistic about the prospects for 2026. Kat Kravtsov, director of UK capital markets at PwC, noted the encouraging momentum from private equity sponsors. "London is also benefiting from a growing cohort of IPO-ready businesses, particularly in financial services and tech-enabled sectors," Kravtsov said. "Combined with rising private equity activity, this creates a favourable backdrop for new issuance."
The outlook is further supported by specific policy measures and corporate interest. The Chancellor's decision to introduce a stamp duty holiday for trading shares of newly-listed firms is expected to provide a boost. Furthermore, several major companies, including software firm Visma and gold miner Navoi Mining, are reportedly weighing billion-pound London listings in the coming year.
"Provided the economic environment stays on track," Kravtsov concluded, "London could be entering a more active listing cycle in 2026."
