Muted activity on the London Stock Exchange in the first quarter of 2026 meant there were just two listings, according to EY-Parthenon’s latest IPO analysis. Subdued IPO activity in Q1 follows a busy end to 2025, when issuance accelerated and market sentiment improved. However, heightened geopolitical tension – most notably the
Kirstie Pickering
Muted activity on the London Stock Exchange in the first quarter of 2026 meant there were just two listings, according to EY-Parthenon’s latest IPO analysis.
Subdued IPO activity in Q1 follows a busy end to 2025, when issuance accelerated and market sentiment improved. However, heightened geopolitical tension – most notably 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.
Of the two UK IPO listings from Q1, one raised £8.8m on the main market and the other £4m on the Alternative Investment Market (AIM). In total, 232 companies went public worldwide in Q1, raising £30.4bn. Despite a 23% fall in overall listings, this represented a 36% year-on-year increase in proceeds.
“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,” says Scott McCubbin, 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.
“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.”
McCubbin adds that the UK listings pipeline remains robust and EY-Parthenon’s advice to prospective issuers is unchanged: continue progressing your IPO readiness so you can move quickly once windows open.
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.
In February, Justin Basini, co-founder and chief executive of ClearScore, told The UKTN Podcast that the UK is the rational IPO choice for British fintechs.
