London’s initial public offering (IPO) market struggled in the first half of 2025 as geopolitical turbulence and trade tensions weighed heavily on investor confidence.
Only nine companies listed on the London Stock Exchange, raising £182.8 million, a 64% drop from the £513.8 million raised in the same period last year, according to data from EY-Parthenon.
The slowdown was particularly evident in the second quarter, which saw four listings raising £108.1 million, a 52% decline year-on-year.
Of the nine listings in the six months ended June, three were on the main market and six on the Alternative Investment Market (AIM).
Scott McCubbin, EY-Parthenon UKI IPO leader, attributed the sluggish pace to global trade uncertainties and escalating geopolitical tensions that have driven market volatility, energy price fluctuations, and inflation concerns.
“Momentum has been slower to build despite expectations of a market rebound in 2025,” he said, adding that London remains the world’s fifth-largest exchange by equity capital raised, with over £7.5 billion raised so far this year.
Globally, IPO volumes remained steady with around 540 deals raising nearly $62 billion in the first half of 2025, though Europe saw a 24% decline in deal volumes and a 60% drop in proceeds, reflecting a more selective and cautious market.
EY-Parthenon partner Grant Humphrey warned that without resolution on trade and macroeconomic stability, the global IPO market is expected to stay subdued in the second half of 2025.