UK IPO market saw cautious start to 2026 as volatility delays listings

• There were just two UK IPOs in the first quarter of 2026 as market conditions were disrupted by global uncertainty and valuation resets
• However, a strong pipeline and healthy follow-on activity on the London Stock Exchange reinforce expectations of a rebound later in 2026
• Global IPO activity also softened in Q1 as markets adjusted to shifting geopolitical and policy pressures

Listing activity on the London Stock Exchange in the first quarter of 2026 was muted, with just two listings, according to EY-Parthenon’s latest IPO analysis. One listing raised £8.8m on the main market, with the other raising £4m on the Alternative Investment Market (AIM).

Subdued IPO activity in Q1 follows a busy end to 2025, when issuance accelerated and market sentiment improved. However, heightened geopolitical tension – particularly the conflict in the Middle East – along with sharp valuation resets in AI-linked and technology sectors has constrained activity among companies preparing to list.

Despite the limited number of new listings, follow-on activity in London remained resilient with strong interest from domestic and international investors.

The opening quarter of 2026 also saw the first transaction on the LSE’s Private Securities Market (PSM) under the FCA’s PISCES framework. The PSM offers private companies an exchange-enabled secondary trading platform, while allowing them to retain their private status and offering them a potential bridge to listing on the LSE main market or the AIM.

Scott McCubbin, EY-Parthenon UKI IPO Leader, comments: “The UK IPO market entered 2026 on the most constructive footing we’ve seen in several years, with momentum building after a flurry of activity in the second half of 2025. Much of the anticipated 2026 pipeline had been expected to concentrate on the second half of the year, but two developments in the first quarter have created short-term uncertainty.

“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. 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.

“Nevertheless, investors appear confident that the geopolitical landscape will stabilise, and in recent years we have seen markets and IPO issuance recover relatively swiftly following significant global disruption. The UK listings pipeline remains robust and our advice to prospective issuers is unchanged: continue progressing your IPO readiness so you can move quickly once windows open.”

Geopolitical tensions reshape Q1 IPO landscape despite early-year optimism

In total, 232 companies went public worldwide in Q1, raising US$40.7bn. Despite a 23% fall in overall listings, this represented a 36% year-on-year increase in proceeds. Listing activity was influenced by tariff uncertainties and the conflict in the Middle East, which unsettled financial markets and drove up energy prices.

The Asia Pacific region had the highest number of listings in Q1 with 107 IPOs raising $19.5bn, followed by EMEIA which had 93 listings and proceeds of $10.6bn. EMEIA also had the largest IPO of the quarter – a defence listing – which raised $4.47bn.

At a country level, Greater China emerged as the leader by number of deals, recording 69 IPOs in Q1, followed by India (54) and the United States (27). Greater China was also the largest market by proceeds raising $16.8bn, followed by the US, which saw proceeds of $10.2bn.

Grant Humphrey, Partner, EY-Parthenon, said: “The global IPO market entered 2026 with cautious optimism, supported by relative market stability, expectations of declining capital costs and the anticipation of several high-profile mega listings. Yet, as recent months have shown, geopolitical and policy dynamics are playing an increasingly decisive role in shaping IPO outcomes worldwide. These forces are creating tailwinds for sectors such as energy, defence and aerospace, while demand remains resilient across areas like AI infrastructure and healthcare.

“As the year progresses, this trajectory will continue to influence market sentiment and deal flow. Many of these factors sit outside the control of any individual company, highlighting the importance of rigorous preparation and maintaining flexibility throughout the IPO journey.”