London’s standing as a premier global financial hub is currently facing a formidable challenge, highlighted by a sharp decline in initial public offerings (IPOs) during the first half of 2025. New data reveals that capital raised from listings on the London market plummeted to a three-decade low, prompting critical questions about the city’s enduring appeal to international capital amidst intensifying global competition.
- London’s IPO fundraising reached a 30-year low in the first half of 2025.
- Only five new listings occurred, collectively raising a mere £160 million ($218.6 million).
- High-profile companies like Shein and Wise have either shifted or considered shifting their primary listings away from London.
- In stark contrast, U.S. markets attracted $28.3 billion from 156 IPOs in the same period.
- The UK government and regulators are actively implementing reforms to revitalize the capital markets.
The Steep Decline in London IPO Activity
According to Dealogic, the first six months of 2025 saw only five new listings in London, collectively raising a meager £160 million ($218.6 million). This figure marks the lowest level of first-half IPO funds recorded by Dealogic since its data collection commenced in 1995. The severity of the current downturn is underscored by a comparison to the period immediately following the 2008 financial crisis, when London still managed to attract £222 million from two IPOs in the first half of 2009. The largest London IPO this year was MHA, a professional services company, which raised £98 million on the Alternative Investment Market (AIM) in April. Further amplifying these concerns, PwC’s recent IPO Watch report indicated that UK IPO proceeds fell to £100 million in the first quarter of 2025, a substantial decrease from £300 million in the same period last year.
High-Profile Departures and Listing Shifts
The challenges extend beyond a mere slowdown in new listings; several high-profile companies have either abandoned their London IPO plans or opted to shift their primary listings. Shein, the prominent fast-fashion retailer, reportedly re-evaluated its IPO ambitions, pivoting from London to Hong Kong. Similarly, Glencore-backed Cobalt Holdings confirmed it had scrapped its planned London IPO. Adding to this notable exodus, British fintech giant Wise announced in June its decision to move its primary listing from London to New York. Wise CEO Kristo Kaarmann stated that the relocation would enhance the company’s visibility in the U.S. and provide access to “the world’s deepest and most liquid capital market.” Reports also suggest that AstraZeneca, currently the most valuable company on London’s FTSE 100 index, is considering a similar move to the United States, signaling a broader trend.
A Tale of Two Markets: London vs. The United States
The stark contrast in capital market activity between London and the United States is evident from recent data. Dealogic figures reveal that U.S. markets witnessed 156 IPOs in the first six months of the year, collectively raising a robust $28.3 billion. This significant disparity underscores the competitive pressures London faces in attracting and retaining major corporate listings.
Revitalization Efforts and Future Outlook
Despite the current difficulties, some market observers perceive potential for a turnaround. Samuel Kerr, Head of Equity Capital Markets at Mergermarket, acknowledged that UK equity markets have “been under a cloud of negative press for some time.” However, he noted increasing interest from businesses in London listings. This renewed attention, he suggests, stems from several years of regulatory reforms implemented within the UK and a degree of policy uncertainty currently observed in the U.S.
The UK government is actively pursuing measures to revitalize its capital markets. Prime Minister Keir Starmer has pledged to review regulations that “needlessly hold back investment.” Last summer, the UK’s Financial Conduct Authority (FCA) overhauled its listing rules, aiming to simplify the process for companies seeking to float shares on the UK market. Mergermarket’s Kerr emphasized that if London can successfully convert this early-stage interest into tangible IPOs, it would significantly help reverse the prevailing “doom narrative” surrounding its financial market prospects, reinforcing its position on the global stage.
David Thompson earned his MBA from the Wharton School and spent five years managing multi-million-dollar portfolios at a leading asset management firm. He now applies that hands-on investment expertise to his writing, offering practical strategies on portfolio diversification, risk management, and long-term wealth building.