IPO outlook: activity and prospects for 2026 after slow Q1
Stock market volatility has paused a lot of prospective new issues, but experts believe a strong pipeline bodes well for later this year. City writer Graeme Evans reports.
9th April 2026 14:21
by Graeme Evans from interactive investor
Takeover bids worth more than £20 billion have contrasted with just two new listings in 2026 after the Middle East war dealt a fresh setback to initial public offerings (IPOs).
- Invest with ii: Open a Stocks & Shares ISA | What is a Stocks & Shares ISA? | ISA Offers & Cashback
The year started with hopes for an uptick in activity after the late 2025 debuts by Princes Group (LSE:PRN) and Shawbrook Group (LSE:SHAW) contributed to the best quarter since 2021 when IPOs outnumbered bids.
However, the only firm to list on the main market of the London Stock Exchange so far this year has been currency trading platform iFOREX Financial Trading Holdings Ltd (LSE:IFRX) after its float in February raised £8.8 million. The other was on the Alternative Investment Market through Halo Minerals (LSE:HALO).
In contrast, the level of merger and acquisition activity has been elevated after City firm Peel Hunt reported 13 potential and proposed offers at the end of the quarter worth £21 billion.
The Q1 figures, which compared with 42 deals worth £35 billion across 2025, exclude situations that have fallen away such as Glencore (LSE:GLEN), Pinewood Technologies Group (LSE:PINE) and Oxford BioMedica (LSE:OXB).
Six of the ongoing bids were for companies in the FTSE SmallCap Index, which continues the rapid pace of de‑equitisation after a 40% fall in the number of constituents since 2018.
The biggest deals were the £7.5 billion approach for Beazley by Zurich Insurance and the £9.9 billion swoop for Schroders by US-based Nuveen.
- City backs this FTSE 100 defensive share trading at a discount
- eyeQ: one to watch in the property sector
On the IPO front, Peel Hunt described the pipeline as the most constructive it has seen in the UK for many years as the majority of firms continue to target the second half of the year.
However, the Iran war and the recent sell-off in AI-impacted sectors means that those firms previously eyeing this quarter for an IPO will have to re-evaluate their timing.
The bank said that a backdrop of stagflationary fears will make it difficult for central banks to cut interest rates as expected and for companies to effectively provide guidance to the market.
It added: “We would note that IPOs rebounded strongly in recent years following the geopolitical shocks of the Russian invasion of Ukraine in the first quarter of 2022 and President Trump’s announcement of global tariffs in the second quarter of 2025.”
Activity peaked in the fourth quarter of last year after five IPOs with a market capitalisation of more than £100 million took the total to six for the year versus three in 2024.
Specialist lender Shawbrook and tinned tuna firm Princes Group raised a total of £750 million via listings that subsequently secured them places in the FTSE 250 index.
The sums involved were still a far cry from the last boom year for IPOs in 2021, when the likes of Deliveroo, Dr. Martens Ordinary Shares (LSE:DOCS) and Moonpig Group Ordinary Shares (LSE:MOON) were marketed to investors.
Setbacks for many of the newcomers and persistent economic uncertainty have since impacted the pace of new listings, meaning the UK recently fell out of the top 20 for IPOs.
As part of efforts to reverse the outflows, Athens-based Metlen Energy & Metals (LSE:MTLN) last year made its debut in the FTSE 100 as reforms opened the door for London-listed securities traded in euros and US dollars to be eligible for index inclusion.
- How to get your finances in shape ahead of big rule changes
- Sign up to our free newsletter for investment ideas, latest news and award-winning analysis
Recent IPO media speculation in the UK has focused on the financial and fintech sectors. The biggest is Revolut, although the Canary Wharf-based digital bank said alongside annual results last month that it had no timeline in place for an IPO.
Reports have also focused on the owners of roadside recovery firms AA and the RAC, while the American owner of Waterstones and Barnes & Noble was also said to be considering a move to float the booksellers in London or New York.
Scott McCubbin, EY-Parthenon UKI IPO leader, said the IPO market entered 2026 on the most constructive footing in several years following a flurry of activity in the second half of 2025.
He added: “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.”
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.