One listing raised £8.8 million on the main market, with the other raising £4m on the Alternative Investment Market (AIM).

Subdued IPO activity in Q1 follows a busy end to 2025, when issuance accelerated and market sentiment improved. However, heightened geopolitical tension – particularly the conflict in the Middle East – along with sharp valuation resets in AI-linked and technology sectors has constrained activity among companies preparing to list.

Despite the limited number of new listings, follow-on activity in London remained resilient with strong interest from domestic and international investors.

The opening quarter of 2026 also saw the first transaction on the LSE’s Private Securities Market (PSM) under the FCA’s PISCES framework. The PSM offers private companies an exchange-enabled secondary trading platform, while allowing them to retain their private status and offering them a potential bridge to listing on the LSE main market or the AIM.

Scott McCubbin, EY-Parthenon UKI IPO leader, said: “The UK IPO market entered 2026 on the most constructive footing we’ve seen in several years, with momentum building after a flurry of activity in the second half of 2025.

“Much of the anticipated 2026 pipeline had been expected to concentrate on the second half of the year, but two developments in the first quarter have created short-term uncertainty.

“First, the sell-off in sectors perceived to be exposed to AI disruption weighed on valuations for technology and software companies. Second, the conflict in the Middle East introduced broader geopolitical instability, raising concerns around inflation and consumer demand. While headline market declines have been relatively modest, sector-level volatility has risen sharply, making near-term execution more challenging for companies in affected industries.

“Nevertheless, investors appear confident that the geopolitical landscape will stabilise, and in recent years we have seen markets and IPO issuance recover relatively swiftly following significant global disruption. The UK listings pipeline remains robust and our advice to prospective issuers is unchanged: continue progressing your IPO readiness so you can move quickly once windows open.”