London IPOs dry up in 2026 as firms fear global volatility and AI bubble

London’s stock market listings dried up at the beginning of 2026 as companies were tentative to debut in the face of geopolitical volatility and tech valuation worries.

But experts said there were firms waiting in the wings which could lead to a rebound later in the year.

There were two initial public offerings (IPOs) on the London Stock Exchange in the first three months of 2026, according to analysis by EY-Parthenon.

Currency trading platform IForex was the only firm to list on the main market of the LSE with its February float raising around £8.8 million, while the Alternative Investment Market (AIM) scored a mining IPO with Halo Minerals.

The subdued activity follows a late flurry of IPOs last year, which saw the flotations of tinned tuna maker Princes Group and small business lender Shawbrook.

This helped drive the strongest year for London listings since 2021.

EY-Parthenon said the heightened geopolitical tensions, particularly war in the Middle East , had helped put the breaks on activity among companies preparing to list this year.

The conflict has sparked volatility in the world’s financial markets and dampened the outlook among economists for inflation and economic growth in the UK.

The research also pointed to worries about a sell-off affecting the stock market valuations of companies linked to technology and artificial intelligence (AI), which came to a head late last year.

However, EY-Parthenon said there was a good pipeline for UK listings and strong interest from domestic and international investors.

Scott McCubbin, EY-Parthenon’s IPO leader for the UK and Ireland, 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.

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“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.”
But he said that investors “appear confident that the geopolitical landscape will stabilise”, adding: “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.”