Public listings in London remained thin on the ground this summer, but confidence appears to be returning as market conditions stabilise and investors grow more optimistic heading into 2026.
The Square Mile is "starting to see a shift in sentiment", according to a new report from EY-Parthenon, with several announcements about initial public offers in recent weeks.
Just three companies floated on AIM, the London Stock Exchange’s junior market, during the third quarter of 2025, raising a combined £16.3 million, according to EY-Parthenon’s latest report.
That brings total UK listings for the year to 12, generating nearly £200 million, a 66% fall in proceeds compared with the same period last year.
EY says momentum is beginning to build, with several flotations confirmed for the coming months, such as lender Shawbrook, food group Princes and fintech Ebury.
“The UK IPO market has largely remained in ‘wait and see’ mode,” said Scott McCubbin, EY-Parthenon’s UKI IPO leader.
“However, we are starting to see a shift in sentiment... prospective companies are keen to move when the pricing window opens.”
He added that London’s “depth of capital, international investor base and strong analyst ecosystem” continue to underpin its appeal, even as global competition for listings intensifies.
Globally, IPO activity picked up pace in the third quarter after a sluggish start to the year.
There were 370 deals raising about US$48.2 billion, up 19% in volume and 89% in proceeds compared with a year earlier, as lower interest rates and better market sentiment revived investor confidence.
The United States, Greater China and India led the rebound, accounting for nine of the ten biggest flotations worldwide.
The US recorded its strongest quarter since late 2021, raising US$15.8 billion, while India saw 146 IPOs worth US$7.2 billion, up more than 50% year-on-year.
Private equity firms have also returned to public markets in force, with the number of PE-backed IPOs more than doubling so far this year and proceeds rising by 68%.
EY said sponsors are increasingly turning to IPOs as a preferred exit route, supported by monetary easing and strong equity markets.
Grant Humphrey, partner at EY-Parthenon, said: “Private equity sponsors are turning to IPOs as a viable route to market... particularly in industries undergoing rapid digital transformation and AI-driven growth.”
With stabilising markets and a growing backlog of prospective issuers, analysts expect the next six to twelve months to mark the start of a gradual recovery for London’s listings scene.