London listings fall to lowest levels since 2023

London's stock listings hit their lowest point since 2023, with only one public offering during the third quarter, marking a quiet period for initial public offerings (IPOs). The sole transaction was the AIM listing of 1947 Oil & Gas plc, which raised £29.8m, according to EY's latest analysis. This brings the total number of UK listings in the first nine months of 2026 to just eight, raising £606.9m.

Uzbekistan's national investment fund, Uznif, was the only notable listing, offering a 30% stake in London and Tashkent in May. This quarter saw a boost for London with the debut of African payments firm Airtel Money, valued at £5.3bn. Despite the low number of listings, capital raised increased significantly, up from the £199.1m recorded in the same period last year.

Scott McCubbin, UKI IPO leader at EY, attributed the lack of listings to "limited activity over the summer months." However, other analysts have expressed concerns over the trend, with Kat Krastov, capital markets director at Pwc UK, citing widespread macroeconomic uncertainty and fiscal policy developments as reasons. McCubbin suggested that most firms considering an IPO are planning for 2027, as market conditions improve.

He noted a strong pipeline of businesses preparing for the market, supported by pent-up demand after years of subdued issuance. Companies like fintech Zilch have signaled their intention to list next year, but the recent deal between the Weston family to buy Boots, a high-street pharmacy chain, has dashed hopes for its listing.

McCubbin also warned that decisions made in the upcoming Autumn Budget could negatively impact the pipeline. Healey has ruled out equalizing capital gains tax (CGT) to income tax rates, citing concerns over its impact on Britain's investment appeal. However, industry figures are urging the government to abolish the 0.5% stamp duty on UK stocks, viewing it as a disincentive.

Despite the UK's slowdown, the global IPO market remained active, with 387 IPOs across markets raising $95.6bn (£72bn) in the quarter. This brings the total raised this year to $290bn, more than double last year's $114.4bn. Middle Eastern and African markets led global activity, while European markets saw momentum from defense, infrastructure, energy, and AI companies, reflecting the EU's push for greater independence in these sectors.

Asia-Pacific reported less activity but saw the highest proceeds, raising $45.9bn. Grant Humphrey, partner at EY, warned that sustaining this momentum will depend on companies coming to market well-prepared with credible plans for sustainable growth, as the challenge lies against rising interest rates, geopolitical uncertainty, and closer scrutiny of AI investment.