London IPOs Shrink 40% in 2023 as Macroeconomic Headwinds Persist

London’s IPOs Took a Heavy Hit in 2023

In 2023, London’s main market saw a dramatic drop with only 23 companies going public – a 49% decrease from 45 in 2022. That’s the quietest year the records reveal since EY started tracking in 2010.

The Numbers Punch Harder Than a Punchline

Funds Raised: £953.7 million in total – a 40% decline from £1.6 billion in 2022.
Largest IPO: CAB Payments pulled in a hefty £291.5 million back in July.

Why Nothing Happened in Q4

During the final quarter, no IPOs landed on either the main market or the Alternative Investment Market (AIM). The market was feeling the pinch of rising inflation, higher interest rates, and global geopolitical tensions.

Looking Ahead: 2024 and Beyond

Scott McCubbin, EY UK’s IPO Leader, hammered the point home:

“The macro‑economic hurdles that slowed M&A activity in 2023 caused a chill in IPOs, especially toward year’s end.”

He also noted:

“Inflation might cool and rates could drop early in 2024, but the upcoming UK and US elections could stall big IPOs until 2025. Still, London’s charm as a global listing hub remains strong, and there’s a spring in the market’s step waiting to bubble up as conditions improve.”

Meanwhile, the FCA’s proposed regulatory tweaks aim to trim red tape while keeping investor safety in check – a move welcomed by most of the market.

So, while 2023 felt like a long, slow winter, there’s a glimmer of hope that the next year might see London’s IPO calendar light up as economic pressures ease.

Global activity continued to cool, but pockets of activity are emerging

2023’s IPO Roller‑Coaster: What the Numbers Actually Mean

Roughly 1,300 companies launched public shares this year. They pulled in $123.2 billion in total, but that’s an 8 % drop in the number of deals and a 33 % plunge in new money compared with 2022. The market felt a little like a rain‑cloud on a summer day.

Tech Starved for Fans

Tech firms still captured the most dough, raising $32.2 billion, but even this top class saw a dip.
Why? Investors were put off by the ‘too‑big‑to‑play’ vibe of the biggest U.S. tech debuts, and AI start‑ups were still largely in the VC sandbox, not ready for the crowd.

Industrials Keep Rolling, While Consumers Shine

The industrial sector had the highest deal count (265) – barrels of equipment ready for public sale.
Consumers were the sole bright spot, growing in both volume and cash year‑over‑year.

Geographic Breakdown

Americas – A Boom in Numbers, Not Cash

+15 % in IPOs, totaling 153 deals.
Three‑fold jump in proceeds to $22.7 billion, fueled by a handful of headline‑making listings.

Asia‑Pacific – A Floundering Picture

732 companies tapped $69.4 billion, a 18 % drop in volume and 44 % decline in value.
China and Hong Kong saw spin‑offs in both metrics.

EMEIA – Slight Upswing, Big Cash Loss

7 % rise in number of IPOs, 413 deals, but a 39 % slump in proceeds (totaling $31.1 billion).

What the Leaders are Saying

Debbie O’Hanlon, EY UKI Private Leader weighed in: “Even though the market’s still a bit rocky, the appetite for IPOs sticks. Smaller deals are popping up and are holding up better on the market than ever.”

She added: “Governments are stepping in with incentives—especially in fast‑growing economies. If your firm is eyeing a public debut, now is the time to sharpen fundamentals and set realistic price expectations. Being ‘IPO ready’ in 2024 will make the difference between a slow roll‑out and a storm‑trope.”