Muted London IPO activity in Q3 but sentiment is improving
IPO activitgs, according to EY-Parthenon. However, sentiment is improving, and a stronger IPO pipeline for the first half of 2026 suggests confidence is returning to the UK’s equity markets.
Between July and September 2025 there were three listings on AIM, raising £16.3m in total. For 2025 year-to-date (YTD), there were 12 listings on both the main market and AIM, raising proceeds of almost £200m. This represents a 65.6% decrease in proceeds compared to the £579 million raised during the same period in 2024.
Scott McCubbin, EY-Parthenon UKI IPO leader, said: “The UK IPO market has largely remained in ‘wait and see’ mode throughout 2025, as companies navigate the repercussions of prolonged geopolitical and macroeconomic instability. However, we are starting to see a shift in sentiment with several large IPOs already confirmed this month. Momentum is now building and the IPO pipeline for the next six to 12 months is strengthening as market conditions improve, with prospective companies keen to move when the pricing window opens.
“London’s depth of capital, international investor base and strong analyst ecosystem continue to underpin its appeal as a listing venue, even as global competition for IPOs intensifies. The outlook for the remainder of the year will be shaped by how companies navigate competition between private and public markets and the backdrop of geopolitical uncertainty – with timing and pricing remaining the decisive factors for successful listings.”
Global markets recover after sluggish start to 2025
The global IPO market showed signs of a recovery in Q3 with 370 deals raising approximately US$48.2bn. Deal volumes increased by 19% whilst proceeds were up 89% year-on-year (YOY), signalling a strong rebound in investor appetite driven by monetary easing and improving market sentiment. In total, the first nine months of 2025 saw 914 IPOs globally raising US$110.1bn.
The US, Greater China and India all saw strong momentum in the quarter, with nine of the top 10 global IPOs in Q3 coming from these three markets. The US achieved its strongest IPO quarter since Q4 2021 raising $15.8bn in Q3, meanwhile, India recorded a standout quarter, with 146 IPOs raising US$7.2 bn in Q3 — a 32% and 54% increase respectively on the same period in 2024.
Looking ahead, the global IPO pipeline is expanding, with strong momentum in real estate, hospitality, construction, industrials, consumer and energy sectors although the technology, media, telecommunications (TMT) sector continues to dominate in terms of volume, representing 28% of global IPO candidates.
A global rebound in IPOs drives renewed PE-exits
In the first three quarters of 2025, the number of PE-backed IPO listings more than doubled, with proceeds rising by 68%. PE firms are increasingly favouring IPOs as a viable exit route, supported by global monetary easing, rallies in major equity benchmarks, and regulatory tailwinds benefiting high-growth sectors, including industrials, life sciences, energy, and technology.
This momentum has extended across key markets, with PE-backed exits reaching their highest level since 2021 in the US and Europe, and India, while Greater China and Japan also recorded notable increases. The US and the Nordics saw PE-backed IPOs account for over two-thirds of total listing value.
Grant Humphrey, partner, EY-Parthenon, said: “Private equity sponsors are turning to IPOs as a viable route to market, with PE-backed listings more than doubling year-on-year across key regions such as the US, Greater China and the Nordics. The breadth of activity across sectors underscores sustained investor appetite for high-quality assets, particularly in industries undergoing rapid digital transformation and AI-driven growth. Well-prepared issuers with strong financials, robust governance and dual-track strategies will be best positioned to seize opportunities as IPO pipelines continue to rebuild globally.”