Key facts
- London's IPO market is expected to remain subdued through 2026 and into 2027.
- Only seven new listings have occurred in the UK this year, raising a combined £557m.
- Several major companies, including Schroders and Tate & Lyle, have been taken private.
- Flutter opted to list on the New York stock exchange instead of London.
- Political uncertainty, particularly regarding new prime minister Andy Burnham's policies, is delaying IPOs.
- The largest listing this year was the sovereign wealth fund of Uzbekistan for £1.4bn.
London's initial public offering (IPO) market is anticipated to remain subdued through the remainder of 2026 and extend into 2027, largely due to ongoing domestic and international political instability, market volatility, and a lack of clear government policy. This year has seen minimal IPO activity, with only seven new listings raising a combined £557 million, a stark contrast to the surge seen at the end of the previous year.
Instead of new listings, the FTSE has experienced a wave of takeover deals, with established companies such as Schroders and Tate & Lyle being acquired by private buyers who are capitalizing on perceived undervaluation in the UK market. Further highlighting the challenges, gambling group Flutter recently completed its listing on the New York stock exchange, having signaled its intention to move away from London.
Investment bank Peel Hunt attributes the market's lopsided nature to a combination of factors, including general market volatility and significant geopolitical events like the conflict in the Middle East and global tech selloffs, which are prompting companies to postpone their public debuts. While analysts foresee a modest increase in IPO activity in the latter half of 2026, they acknowledge that many firms may opt to wait even longer.
The uncertainty surrounding the market policies of the new prime minister, Andy Burnham, and his team, including City minister Lucy Rigby and chancellor John Healey, is a key factor causing potential issuers to re-evaluate their timelines and push back listings further. Industry figures and politicians are pressuring the government to intervene and address the issues plaguing London's market, with some accusing the financial watchdog of insufficient action.
Peel Hunt notes that while a pipeline of high-quality UK companies exists, broader industry optimism is waning due to the rarity of blockbuster IPOs. The last significant IPO of this nature was food delivery firm Deliveroo, which floated for £7.9 billion in 2021 before being sold to US rival Door Dash. This year's largest listing was the sovereign wealth fund of Uzbekistan, which raised £1.4 billion in May.