London's IPO market is expected to remain subdued for the rest of 2026, with this trend potentially extending into 2027. Domestic and overseas political upheaval is cited as a factor deterring companies from listing.
This year, the UK stock market has experienced minimal IPO activity, with only seven new listings to date, which collectively raised £557m. This follows an IPO surge at the end of last year, which included listings from British bank Shawbrook and Princes Group.
In contrast to the listing slowdown, the FTSE has seen a wave of takeover deals since the start of the year. Companies like Schroders and Tate & Lyle have been acquired by private buyers, reportedly capitalising on the UK's valuation gap. Some companies have also chosen to list elsewhere; for example, gambling group Flutter completed its listing on the New York stock exchange after planning to leave London.
Investment bank Peel Hunt attributes the market's current state to the impact of market volatility and ongoing geopolitical events, including the conflict in the Middle East and global tech selloffs. These factors are reportedly causing companies to delay their public offerings. While analysts anticipate a slight uptick in the second half of the year, many firms considering listing may wait even longer.
Companies contemplating going public are reportedly looking to new Prime Minister Andy Burnham and his team, including City minister Lucy Rigby and Chancellor John Healey, for policy announcements regarding London's IPO market. The uncertainty surrounding Burnham's market policy has reportedly led many potential issuers to re-evaluate their timetables, pushing back listings further into next year.