London IPOs hit 30-year low with £160M raised this year

London’s once-mighty equity capital market has slumped to its weakest showing in 30 years, raising fresh concerns about the UK’s place on the global financial level. 

In the first half of 2025, just five companies floated on UK markets, securing a total of £160 million in initial public offering (IPO) funds, the lowest six-month tally since 1995 and a sharp decline from previous depths post‑2009 and in early 2021.

From market leader to underperformer

The IPO collapse marks a stunning reversal for London, which barely raised £200 million from two listings in the first half of 2009. The current £160 million total is not only 28% lower than that post‑crisis low, but also a staggering 98% plunge from the early 2021 boom during the pandemic.

A senior equities analyst at Goldman Sachs describes London’s fall from grace, saying, “You get fewer companies, they are less liquid, you see the best growth companies listing elsewhere, therefore any companies that arise are reluctant to list in the U.K.”

Generally, the IPO climate has deteriorated under the pressure of macroeconomic uncertainties. Trade tensions, particularly tariff-related fears, have eroded investor confidence, leading to a steep retreat in equity raisings and mergers and acquisitions (M&A), the latter falling to 20-year lows.

Shein is yet another missed opportunity

Enter Shein, the fast-fashion behemoth founded in China and headquartered in Singapore. The company has long eyed a London IPO, but regulatory objections, particularly around disclosure of its Xinjiang-linked supply chain, have stalled the process.

Although the UK Financial Conduct Authority (FCA) approved one version of its prospectus, Chinese regulators, notably the China Securities Regulatory Commission (CSRC), refused to do so.

Shein has reportedly filed a confidential draft prospectus for a separate Hong Kong IPO. While Hong Kong remains the primary target for now, industry sources suggest the move doubles as a pressure tactic, aimed at pushing the UK regulator to accept the CSRC‑approved version and revive the London listing, which would have been the largest in years.

If London were to secure Shein, it would signal a revival in sentiment, but its failure to do so compounds its woes. Analysts note it would have been “one of the largest UK IPOs in the past decade,” underscoring London’s struggle to attract marquee global tech names.

As London falters, Hong Kong’s exchange is booming. Some 208 listing applications came in during H1 2025, raising US$13.9 billion, easily outstripping major Western bourses, even as firms increasingly prefer Hong Kong or New York.

Hong Kong’s environment, particularly for companies linked to China, offers greater regulatory certainty and quicker time to market. It also benefits from investor familiarity with supply-chain disclosures, including concerns around Xinjiang.

London scrambles for a solution

As the UK enters the second half of 2025, London finds itself at a critical juncture. Next quarter will be telling: success in landing Shein (or a similar blockbuster listing), clarity from the FCA–CSRC on prospectus terms, improved global market sentiment, or a moderation in US tariffs could help restore momentum.

Conversely, further IPO pullbacks, high-profile companies migrating to New York or Hong Kong (Wise recently switched its main listing to the US), or continued regulatory tension may just cement London’s status as an afterthought in global capital markets.

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