8th Apr 2026 19:29
(Sharecast News) - Heightened geopolitical tensions and concerns about overvaluations in the tech sector constrained activity among companies preparing to list on the stock market in the first quarter, according to the latest analysis by EY-Parthenon on Thursday.
Muted appetite for listing saw just two initial public offerings in London over the first three months of 2026 - one raising £8.8m on the main market and the other raising £4m on AIM - following a strong end to 2025.
Back in the UK, while most of the anticipated 2026 listing pipeline had always been expected to concentrate on the second half of the year, new developments have created "short-term uncertainty", according to Scott McCubbin, the UKI IPO leader at EY-Parthenon.
"First, the sell‑off in sectors perceived to be exposed to AI disruption weighed on valuations for technology and software companies. Second, the conflict in the Middle East introduced broader geopolitical instability, raising concerns around inflation and consumer demand," McCubbin said.
"While headline market declines have been relatively modest, sector‑level volatility has risen sharply, making near‑term execution more challenging for companies in affected industries."
Despite the low number of new listings in the first quarter, follow‑on activity in London remained resilient with strong interest from domestic and international investors, the figures showed.
Looking further afield, a total of 232 companies worldwide raised $40.7bn going public over the first quarter in total, representing a 23% year-on-year drop in the number of listings but a 36% jump in proceeds raised.
Asia Pacific accounted for nearly half of all new listings, with 107 IPOs raising $19.5bn, with 69 IPOs in China and 54 in India.