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(Sharecast News) - New listings activity on the London Stock Exchange was "muted" in the third quarter, according to new figures out from EY on Thursday, though confidence is starting to build as market conditions stabilise.
According to an EY-Parthenon quarterly IPO tracker, there were only three initial public offerings during the three months to September.
The flotations, on AIM, raised 16.3m in total, taking the year-to-date total to nearly 200m over 12 listings - a 65.6% drop in proceeds compared with the first three quarters of 2024.
"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," said Scott McCubbin, EY-Parthenon UKI IPO leader.
However, there has been a "shift in sentiment" this month, with several large IPOs already confirmed, and the pipeline for the coming six to 12 months is "strengthening".
"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," he said.
There is already speculation that chancellor Rachel Reeves is considering a stamp duty holiday on new London listings in an effort to boost the capital's competitiveness as a public capital market.
When you buy shares in the UK, you typically pay a tax of 0.5% on the transaction, though the duty is no longer applicable to stocks on AIM. The US, China and Germany do not have an equivalent fee for share transactions.
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