London listing activity set to rebound in 2026 as trading conditions pick up

6th Jan 2026 07:53

(Sharecast News) - New listings on the London Stock Exchange are expected to rebound in 2026 as recent IPO activity gains momentum, according to EY's latest listing analysis on Tuesday.

A total of 23 companies debuted on London's stock market in 2025 - nine on the main market and 14 on the Alternative Investment Market (AIM) - raising a total of £2.1bn.

That's a 170% jump on the £778m of proceeds generated from 18 issuers in 2024, though still low compared with historic levels.

At the same time, the global IPO market experienced a recovery in 2025, with proceeds up 39% at $171.8bn as 1,293 companies went public.

In the fourth quarter alone, initial public offerings in London raised £1.9bn, with a number of companies moving ahead with postponed flotation plans as market sentiment improved.

With London's benchmark FTSE 100 currently trading at an all-time high - the index topped the 10,000 mark for the first time on Monday following a 21.5% surge over the 2025 calendar year - increased sentiment suggests that IPO activity would continue to climb further this year, EY said.

Activity has been further supported by recent reforms to the UK's listing rules, including the introduction of a three-year stamp duty holiday for newly listed companies.

"Looking ahead, the pipeline of prospective IPOs remains strong, supporting expectations of a renewed uptick in activity in the first half of 2026," said Scott McCubbin, the IPO leader at EY-Parthenon UKI.

"Recent reforms to the UK's listing regime are beginning to have a tangible impact, improving market accessibility and issuer confidence."