The London stock market saw just new five listings in the first quarter of 2025, raising £74.7m in proceeds.
Looking ahead, the UK market now faces heightened uncertainty following the US trade tariffs announcement, and IPO activity is expected to stall in the coming year.
Scott McCubbin, EY UKI IPO Leader, said, “The IPO market thrives on stability, but ongoing macroeconomic and geopolitical instability continues to subdue listing activity in the UK.
“Following the announcement of US trade tariffs, we’ve seen market volatility grow to levels not seen since the COVID pandemic. Companies considering an IPO must now weigh the risks of listing in such turbulent conditions, alongside rising input costs. The ambiguity surrounding global trade policy is also likely to dampen investor appetite and could lead to delayed listings or reduced valuations in the year ahead.”
In total, there were five new lPOs in Q1 2025, two on the main market and three on the Alternative Investment Market (AIM). The listings raised £74.7m in proceeds – a 74% year-on-year (yoy) fall in deal value from the £288.8m raised in Q1 2024.
Scott McCubbin added: “As the market continues to navigate uncertainty, there are some encouraging signs. Latest data from the London Stock Exchange shows that total equity capital raised on London’s markets has reached £7.3bn so far in 2025, reinforcing its position as Europe’s leading destination for capital raising. Firms with a strong domestic focus or those in tariff-favoured sectors may still find a receptive market. In this climate, IPO timing and positioning are more critical than ever.”
Global IPO market continued its recovery, with the US leading the way
The global IPO market saw total deal values increase by 20% yoy in Q1, with 291 IPOs raising US$29.3bn. The US experienced its third strongest Q1 performance on record with 59 listings raising proceeds of £8.9bn.
Asia-Pacific exchanges showed signs of recovery, with Japan contributing the largest global IPO this quarter, whilst Hong Kong, South Korea, and Malaysia all recorded robust growth. However, IPO activity in the Chinese mainland and Oceania remain subdued.
In EMEIA, significant shifts in US domestic and foreign policy under a new US administration, brought more uncertainty to the European IPO market. However, the Middle East continued to perform well, while India stood out for its substantial deal value with proceeds reaching $US2.8bn, despite a decline in deal volume.
AI transforming the global IPO landscape
AI adoption is transforming the IPO landscape and significantly influencing companies’ growth trajectories. This was particularly evident in the technology, financial and health and life sciences sectors in Q1 2025, with AI referenced in approximately half of all company filings, as businesses seek to leverage AI to streamline their operations and maximise their chances of successful public offerings.
Grant Humphrey, Partner, EY-Parthenon, said, “Despite an increase in global IPO deal value, ongoing macroeconomic and geopolitical challenges – including the recent US trade tariffs announcement – are shaping a more unpredictable IPO market.
“The impact of this instability is likely to suppress listings globally in the short-term, until the longer-term impact of the tariffs becomes clearer. It is essential for businesses to navigate these policy shifts with caution, whilst also embracing technological advancements such as AI, to ensure they are IPO-ready when market momentum returns.”
