💼 London IPO Market Hits 30-Year Low with Just £160M Raised in 2025
London’s stock exchange, once a global powerhouse for equity fundraising, is now facing its weakest IPO activity in three decades — raising serious questions about the UK's standing in international financial markets.
📉 IPO Activity at Historic Lows
In the first half of 2025, only five companies floated on UK markets, raising a combined £160 million — the lowest six-month total since 1995. That figure is even below the £200 million raised during the post-crisis lull in 2009 and represents a 98% drop from the IPO boom of early 2021.
A senior equities analyst at Goldman Sachs summed it up bluntly:
> “You get fewer companies, they are less liquid, you see the best growth companies listing elsewhere — so any new firms are reluctant to go public in the UK.”
🌍 Global Tensions & Investor Caution
The broader macroeconomic landscape isn’t helping. Ongoing trade tensions, especially around tariffs, have rattled investor confidence. IPOs and mergers & acquisitions (M&A) have both plunged — M&A volumes are now at 20-year lows.
🚫 The Missed Opportunity: Shein
A major blow came in the form of Shein, the fast-fashion giant. Though Shein had long considered a London IPO, regulatory clashes stalled its progress — particularly concerns over transparency in its Xinjiang-linked supply chain.
While the UK's Financial Conduct Authority (FCA) approved one version of its IPO documents, China’s CSRC refused, creating a deadlock. Now, Shein has filed a confidential draft for a Hong Kong IPO, which analysts believe may be a pressure tactic to nudge UK regulators into alignment.
Had London landed Shein, it would have been one of the largest UK IPOs in a decade — and a much-needed vote of confidence in the market.
📈 Hong Kong Surges Ahead
As London stumbles, Hong Kong is thriving. In H1 2025 alone:
208 IPO applications
US$13.9 billion raised
The city offers faster time-to-market, investor familiarity with Chinese disclosures, and smoother regulatory pathways — all key advantages in today’s climate.
🔄 What's Next for London?
The second half of 2025 could prove decisive. Possible turning points include:
A breakthrough with Shein or another high-profile IPO
FCA–CSRC coordination on prospectus standards
A recovery in global investor sentiment
Easing of US tariff policies
But if high-profile listings continue to favor New York and Hong Kong (as Wise recently did), and regulatory deadlock persists, London risks becoming a marginal player in the global capital markets.
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