London IPO Market Hits 28-Year Low Amid US Listing Shifts

London's initial public offering (IPO) market has hit a 28-year low, with the first half of the year marking the slowest period for IPO volume since 1997. This downturn is exacerbated by concerns that AstraZeneca Plc, one of the UK's most valuable companies, may move its stock listing to the US. The company's CEO, Pascal Soriot, has expressed frustration with the UK's regulatory regime for drugs and concerns about the country's life sciences industry falling behind the US and China. Such a move would significantly impact the financial sector and could encourage other firms to follow suit, further diminishing London's appeal as a listing venue.

The trend of companies moving their listings to the US has been accelerating, with Wise Plc being the latest to announce its relocation to New York. This follows a pattern seen with other companies like Flutter Entertainment Plc, CRH Plc, and Indivior Plc. The shift is driven by the search for better liquidity and new investors, which are more readily available in the US market. Additionally, the trend of UK-listed companies receiving takeover offers this year has raised concerns about the potential reduction in the number of growth companies listed on the exchange. Spectris Plc, Deliveroo Plc, and Assura Plc are among the 48 pending or completed deals since January 1 targeting London-traded firms.

Charles Hall, head of research at Peel Hunt, highlighted the significant reduction in the number of UK-listed growth companies due to the scale of mergers and acquisitions (M&A) and the lack of IPOs. He emphasized the need for reforms in pension, ISA, and stamp duty to address the continued outflows of UK capital. Despite these challenges, dealmakers are optimistic about a tentative recovery in the fourth quarter, with a few more IPOs expected to come to market. This could pave the way for a stronger rebound from 2026, although it may not be the strong re-opening everyone is hoping for.

Professional services firm MHA Plc was the biggest offering so far in 2025, raising £98 million on London’s junior bourse AIM. However, Glencore Plc-backed Cobalt Holdings Plc called off what could have been London’s largest IPO in two years, and fast-fashion retailer Shein has shifted its IPO preparations to Hong Kong from London. Some companies considering a London IPO this year include Italy’s NewPrinces SpA, Banco Santander SA-backed payments firm Ebury, and Uzbek gold miner Navoi Mining & Metallurgical Co. The biggest boost for London's IPO market is expected next year from the planned IPO of €19 billion software giant Visma, which is tentatively picking the British capital for the listing due to London’s listing reforms.

London is not alone in facing challenges; Europe as a whole suffered its worst first half for IPO volumes in more than a decade. Bourses in Milan, Paris, and Zurich saw lower volumes than London, partly due to volatility unleashed by US President Donald Trump’s tariffs, which shut the market for weeks and prompted some issuers to delay their plans for going public. Despite these challenges, London remains the busiest venue in Europe for overall share sales volume, driven by follow-on issuances. For companies with a compelling equity story and a strong management team, the London market continues to function effectively.