London IPO market hits lowest level since 2023 amid global growth

The London stock exchange recorded its lowest number of listings since 2023, with only one public offering completed in the third quarter. This single transaction, the AIM listing of 1947 Oil & Gas plc, raised £29.8m. According to analysis from EY, this marks the quietest period for the market since the fourth quarter of 2023, when no companies listed. The sparse activity brings the total number of UK listings in the first nine months of 2026 to just eight, which collectively raised £606.9m. Notably, Uzbekistan’s national investment fund Uznif listed a 30 per cent stake in London and Tashkent in May, standing out as a significant deal amidst the otherwise subdued market.

Despite the low volume of new floats, the total capital raised in the quarter increased significantly compared to the £199.1m recorded in the same period of 2025. A recent boost came from African payments firm Airtel Money, which debuted on the stock exchange this week with a valuation of £5.3bn. Scott McCubbin, UKI IPO leader at EY, attributed the lack of listings to limited activity over the summer months. However, Kat Krastov, capital markets director at Pwc UK, has previously cited the fallout from the conflict in the Middle East as a primary driver, noting that widespread macroeconomic uncertainty and fiscal policy developments have weighed on corporate sentiment. McCubbin suggested that most firms considering an IPO are targeting 2027, anticipating that market conditions will continue to improve and pent-up demand will translate into activity in the fourth quarter and early next year.

Several companies, including fintech Zilch, have signalled intentions to list next year. However, plans for high-street pharmacy chain Boots to go public were abandoned earlier this month after the Weston family agreed to buy the group for nearly $9bn. McCubbin warned that decisions in the upcoming Autumn Budget could impact the pipeline. While reports suggest the Chancellor has ruled out equalising capital gains tax to income tax rates to protect Britain’s investment appeal, industry figures are urging the abolition of the 0.5 per cent stamp duty on UK stocks, describing it as a disincentive.

In contrast to the UK, the global IPO market avoided the current slowdown. There were 387 IPOs across global markets in the quarter, raising $95.6bn, which brings the total raised this year to $290bn, more than double last year’s figure. Middle Eastern and African markets led activity with 202 listings, including 138 in India. European markets also gained momentum, driven by investor interest in defence, infrastructure, energy and AI companies. Although Asia-Pacific reported fewer listings, it generated the highest proceeds at $45.9bn, with mainland China and Hong Kong accounting for the majority of activity. Grant Humphrey, partner at EY, noted that the challenge now is sustaining this momentum against rising interest rates and geopolitical uncertainty, while emphasising that well-prepared companies with credible growth plans are best placed to attract investors.