Fundraising from initial public offerings (IPOs) in the London market experienced a significant decline, hitting a 30-year low in the first half of 2025. Data from Dealogic revealed that London saw only five listings in this period, raising a total of £160 million ($218.6 million). This figure is the lowest recorded since Dealogic began collecting data in 1995, even falling below the £222 million raised in the first half of 2009, following the global financial crisis. In stark contrast, U.S. markets recorded 156 IPOs, raising $28.3 billion, during the same period.
Several factors contribute to this downturn. The U.K.'s Financial Conduct Authority has recently overhauled listing rules to simplify the process, and Prime Minister Keir Starmer has pledged to revitalize capital markets by reviewing regulations. However, the market has seen high-profile companies like Shein and Cobalt Holdings abandon London IPO plans for other markets, with fintech giant Wise moving its primary listing to New York and AstraZeneca reportedly considering a similar move, citing access to deeper and more liquid capital markets in the U.S. PwC's IPO Watch report indicated a drop in IPO proceeds to £100 million in Q1 2025, down from £300 million a year earlier.
Despite the current challenges, some analysts suggest a potential for improvement. Samuel Kerr, head of equity capital markets at Mergermarket, noted that more businesses are beginning to consider London listings due to reforms and uncertainty in the U.S. regulatory landscape. Additionally, the recent decision by Norwegian software giant Visma to choose London for its IPO indicates continued appetite among high-growth companies. Janet Mui, head of market analysis at RBC Brewin Dolphin, highlighted that while global IPO exits are slowing due to macro uncertainty and tighter financial conditions, sustained efforts to streamline listing processes are crucial for London to regain its attractiveness as a financial center.
