London IPO Market Hits Three-Decade Low:London’s IPO market has hit a historic low in the first half of 2025, raising just $218 million — the weakest in three decades. As global giants like Shein and Wise turn away from London, US markets thrive. This article explores the reasons behind London’s decline, key IPOs, and whether government-led reforms can reverse the trend.
London IPO Market Hits Three-Decade Low
The first half of 2025 has delivered a grim milestone for London’s financial markets. According to data from Dialogic, fundraising through initial public offerings (IPOs) in London slumped to its lowest level since records began in 1995. Only five companies went public during the first six months of the year, raising a mere $218 million — a stark contrast to the activity seen in previous decades.
To put this in perspective, even during the turbulent aftermath of the 2008 financial crisis, IPO fundraising in London managed to surpass $33 million in the first half of 2009. The current numbers not only reflect a dramatic slowdown but also highlight how far the UK capital has fallen behind in the global race for listings.
The largest IPO in London this year came from professional services firm MHA, which raised $133 million in April on the Alternative Investment Market (AIM). While notable, this solitary deal was not enough to counterbalance the lack of broader activity in the market.
Comparatively, US markets are thriving. In the same six-month period, American exchanges welcomed 156 IPOs, pulling in a massive $28.3 billion in capital. This stark difference underscores how companies are increasingly favoring US markets for their depth, liquidity, and investor appetite.
London’s declining status as a global capital market hub is also visible through the decisions of several high-profile firms. Chinese fast-fashion giant Shein chose to list in Hong Kong instead of London. Cobalt Holdings, another major name, confirmed it had shelved its London IPO plans. In a more symbolic shift, British fintech leader Wise announced it is moving its primary listing to New York, citing the appeal of the world’s deepest capital market.
The situation is concerning for the UK’s financial landscape, but not without hope. In response to the worrying trend, the UK government and the Financial Conduct Authority (FCA) have introduced reforms aimed at simplifying listing rules and attracting more firms to London’s stock exchanges. These changes are part of a broader effort to make the UK a more competitive and appealing place to raise capital.
Prime Minister Rishi Sunak’s administration has pledged to eliminate unnecessary regulatory burdens and support the revival of Britain’s capital markets. There are early signs that these efforts may be sparking renewed interest, with some market watchers observing a slight uptick in companies exploring London listings.
However, analysts remain cautious. While policy changes may lay the groundwork for a turnaround, converting early interest into concrete listings will require more than just regulatory tweaks. Confidence in London’s markets needs to be rebuilt, and that will take time, consistent policy support, and perhaps a few headline-grabbing successes.
In the meantime, London’s IPO story in 2025 stands as a warning — and an opportunity — for policymakers, regulators, and market participants to rethink and revamp the city’s appeal in a fiercely competitive global landscape.
Disclaimer:
This article is intended for informational and educational purposes only. It does not constitute investment, financial, or legal advice. The views and data presented are based on publicly available information and may change over time. Readers are strongly advised to conduct their own research or consult a qualified financial advisor before making any investment or business decisions. The blog and its authors are not responsible for any financial losses or decisions made based on the information provided herein. Investing in IPOs or stock markets involves risks, including the potential loss of capital.