The London Stock Exchange is facing a critical moment, with fresh data from PwC and stark warnings from business leaders highlighting growing concerns about the UK’s appeal to public companies.
According to PwC’s latest IPO Watch EMEA report, IPO activity across Europe dropped 65% in the first half of 2025 compared to the same period last year – and London’s share was just £109m.
While a few major moves made headlines, including Anglo American’s platinum demerger and Rosebank Industries’ £1.14bn raise, the overall pipeline remains dry.
The picture is in sharp contrast to global markets, where IPO activity rose 18%, thanks largely to a rebound in the US and Asia Pacific.
This included a surge in special purpose acquisition companies (SPACs) and the $2.5bn listing of JX Advanced Metals in Tokyo.
However, away from the numbers a report from the Confederation of British Industry (CBI) warned that 213 companies have left the London Stock Exchange since 2016, describing the current situation as a “pivotal moment” for the UK’s financial sector.
Chair Rupert Soames said the UK must act fast with better marketing, lighter regulation, and stronger incentives for investors if it wants to compete with international markets.
He said: “There is £300bn that people have squirrelled away [in cash ISAs], and I suspect the chancellor will want to do something about that and say that if you are going to take tax shelter then should it be in cash or something productive.”
While Chancellor Rachel Reeves is expected to outline plans to encourage more investment in UK companies, many in the industry say action is long overdue.
“As IPO markets gradually reopen, we are spending more time with issuers exploring various listing options,” said Kat Kravtsov, capital markets director at PwC UK.
“While the listing location of peers is important in decision making, the overarching equity story of the business, a broader understanding of the sector, and company-specific considerations around its nexus into the listing country of choice will also be driving factors.
“The relative size of the business and its strategy direction is clearly important and early conversations with investors will help inform the decision to list.
“In the current environment, market agnostic early IPO readiness and agility are critical and allow issuers to react quickly to changing market conditions and address early investor feedback.”
Vhernie Manickavasagar, capital markets partner at PwC UK, added: “The global market volatility at the beginning of the second quarter, fuelled by uncertainty over global trade tariffs, understandably prompted several companies to delay their IPO plans
“Despite slower IPO activity, the London market remained active with a notable demerger, capital raises and the recently announced intention to list of an international energy and metals group.
“Our expectation for the remainder for the year hinges on further stabilisation of the macroeconomic and geopolitical backdrops.
“Should these conditions be met, we anticipate a revival of listing activity across Europe and the UK, including further demergers and sponsor-backed IPOs, in the second half of 2025 and into 2026.”
The wider trend is clear – EMEA IPO proceeds halved, down to $9.4bn from 67 listings in the first half of 2025.
Meanwhile, the Middle East, especially Saudi Arabia, is thriving, with 23 IPOs in the KSA alone and Flynas raising over $1bn.
London’s challenges reflect broader issues across Europe, but with geopolitical tensions and economic uncertainty starting to ease, PwC expects a pickup in activity for the rest of 2025 and into 2026.