Fundraising through initial public offerings (IPOs) in London has plunged to its lowest level in at least three decades, according to new data from Dealogic released on Friday.
Historic drop in IPO proceeds
Just five IPOs were recorded in the first half of 2025, raising a combined £160 million ($218.6 million). That marks the lowest amount raised in the first six months of any year since Dealogic began tracking the data in 1995.
To underscore the severity of the decline, even in the wake of the 2008 global financial crisis, two companies raised a total of £222 million through London IPOs in the first half of 2009 — £62 million more than what has been raised so far this year.
The largest listing in London this year was professional services company MHA, which debuted on the Alternative Investment Market (AIM) in April, raising £98 million.
Yet this single IPO accounted for over 60% of total proceeds in the first half, highlighting the scarcity of large-scale listings.
In contrast, US markets continued to outpace the UK by a wide margin, with 156 IPOs raising $28.3 billion in the first half of 2025, according to Dealogic.
Firms look overseas as London listings dwindle
The slump in London IPO activity comes amid a broader re-evaluation by companies of where to list their shares.
Several high-profile firms have recently turned away from the UK capital in favor of other markets.
Chinese fashion giant Shein, once rumored to be eyeing London for a potential blockbuster IPO, is now planning to list in Hong Kong.
Similarly, Cobalt Holdings, a metals investment firm backed by commodities trader Glencore, confirmed last month that it had abandoned its London IPO plans.
Beyond IPOs, established London-listed companies are also reconsidering their positions.
In June, British fintech company Wise announced it would shift its primary listing to New York, citing improved access to deeper and more liquid capital markets in the US.
CEO Kristo Kaarmann said the move would also raise the company’s profile in the American market.
Meanwhile, reports surfaced earlier this week that pharmaceutical giant AstraZeneca, the most valuable firm on the FTSE 100, is considering a similar move to the US, further underlining the challenges facing London as a global financial center.
Hope on the horizon?
Despite the gloom, some market participants see reasons for cautious optimism.
Samuel Kerr, head of equity capital markets at Mergermarket, acknowledged that U.K. equity markets have suffered from sustained negative sentiment but noted a potential turnaround in interest.
“We are seeing more businesses beginning to look seriously at London listings again after several years of reform and broader uncertainty over the regulatory and policy direction of the US,” Kerr told CNBC.
The U.K. government, under Prime Minister Keir Starmer, has pledged to reinvigorate the country’s capital markets.
Starmer has emphasized the need to eliminate regulations that he argues are stifling investment.
Last year, the Financial Conduct Authority introduced reforms aimed at streamlining the listing process, part of a broader effort to restore London’s competitiveness.
Kerr suggested that if early-stage interest can be successfully converted into IPO activity, London may yet begin to shed its “doom narrative” and reclaim some of its lost appeal.
Earlier Financial Times reported that Norwegian software company Wisma is going to debut in London, showing that all is not lost for London.
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