London’s IPOs Drift Into a Slow Lane
In the first six months of 2025 the London Stock Exchange added nine fresh listings, netting a total of £182.8 million—a whopping 64 % dip compared to the Christmas‑boosted £513.8 million from the same period last year.
Where the Money’s Poised
- Three went up the Main Market, and six took the Alternative Investment Market (AIM) route.
- In the second quarter alone, companies pulled in £108.1 million, marking a 52 % slide off the £215.6 million haul of Q2 2024.
Why the Slow‑pokes Are Stepping Back
Scott McCubbin from EY-Parthenon UKI IPO‑Lead said, “We had hopes a 2025 surge would kick off the UK’s IPO scene again, but the economy keeps telling us otherwise. Geopolitical jitters, variable tariffs, and the long‑running battle over energy prices have the market feeling jittery. The bigger picture isn’t just London—trading stops everywhere—but we’re still the fifth‑largest exchange worldwide, raising more than £7.5 billion this year.
He added that a second‑half push in mergers and acquisitions could reignite the IPO flame, but companies need to start early, chart out how to hit profitability, and build operational resilience if they’re to survive the next market wobble.
The Global Scene: A Mixed Bag
The worldwide IPO ecosystem shrugged on volume with roughly 540 deals totalling nearly US$62 billion. While the number of deals held steady year‑on‑year, proceeds nudged up by 17 %. Asia‑Pacific was the star, outpacing other regions, while the Americas held their own.
Europe and India dipped, the Middle East surged, and the US, India, and China combined for two‑thirds of all IPOs—taking half of the global proceeds. In Europe the climb stopped, with deal volumes retreating by 24 % and profits falling a staggering 60 % to US$5.9 billion. Investors are now picking their battles, only list those companies that can brag about profitability and grit.
From the Industry Insight Desk
Grant Humphrey of EY-Parthenon noted a “cautious, risk‑averse” vibe that’s the norm for the rest of 2025. “Valuation pressures, shaky supply chains, and looming recession fears are stalling many PE‑backed firms,” he said. “We anticipate a quiet second half unless trade tensions clear up or the macro‑climate steadies.”
Sector Snapshots
- Industrials: Handled the bulk of the listings, with a hefty boost from the mobility sub‑sector and the likes of India, Greater China, and South Korea. Geopolitical tension spurred reshoring and friend‑shoring efforts, handing domestic manufacturing and advanced tech a solid lifeline.
- Technology: A 19 % rise in capital raised year‑over‑year; investors are sharpening their focus on proven, profitable tech, especially AI‑centric names. The US remains a magnet for software companies, with volumes doubling from the first half of 2024.
Bottom Line
LONDON’s IPOs are clearly feeling the heat, with companies taking stock before the next wave. Global vibes paint the same picture—a wary, selective investor base that leans only on proven winners. If you’re thinking of going public, early prep and a sign‑post to profitability are your best bet.
