UK IPO proceeds trebled in H1 2026 — is London’s stock market revival finally here?

A quiet few years for London’s stock market may be turning. EY data released on Wednesday shows that UK IPO proceeds more than trebled in H1 2026 compared with the first half of 2025, while the M&A market has also surged — with easyJet, ITV and Novartis’ acquisition of UK biotech Myricx all announced in a single week (Sharecast / EY, 7 July 2026).

But the picture is more complicated than the headline. The UK still lost two large companies to overseas listings in H1, and the IPO total was inflated by a stronger H2 2025 that pulled deals forward. Here’s an honest read of what’s actually happening on the London Stock Exchange.

What did the EY IPO report show?

EY’s H1 2026 UK IPO report, released on 7 July 2026, found that the amount raised through UK market debuts in the first six months of 2026 more than trebled compared with H1 2025. The firm cited improving market sentiment, regulatory reforms and a stamp duty exemption for newly listed companies as the key drivers of the recovery (Sharecast / EY, 7 July 2026).

However, context matters. Q1 2026 was notably weak: just two UK IPOs completed, as the AI sector sell-off and the Middle East conflict created volatility that caused companies to delay listings. The H1 2026 total was heavily weighted toward Q2, when conditions improved. EY’s own Q1 analysis noted that “much of the anticipated 2026 pipeline had been expected to concentrate on the second half of the year” (EY-Parthenon, April 2026).

What is driving the recovery?

Three structural changes to the UK’s listing framework have made London a more attractive destination for companies considering going public:

• Listing regime reform: the Financial Conduct Authority’s overhaul of the UK Listing Rules, which came into effect in 2024, simplified the categories of listed company, removed dual-class share restrictions for premium listings, and reduced the free float requirement from 25% to 10%. EY notes these reforms are “beginning to have a tangible impact, improving market accessibility and issuer confidence” (EY-Parthenon Q4 2025 report, January 2026)
• Stamp duty exemption: the Chancellor’s 2025 Autumn Budget introduced a three-year stamp duty exemption for shares in newly listed companies on the London Stock Exchange, directly reducing the cost of owning newly floated companies and making UK IPOs more attractive to investors
• UK Listing Relief (UKLR): the new rules replaced the old Premium and Standard segments with a single Commercial Companies category, giving founders and entrepreneurs more flexibility while maintaining investor protections

Together these reforms address some of the specific complaints that had caused companies to favour New York or Amsterdam over London for their listings.

23 companies listed on the London Stock Exchange in 2025, raising £2.1 billion — a 170% year-on-year increase in proceeds despite broadly unchanged deal volumes. EY described the London IPO market as entering 2026 on “the most constructive footing we’ve seen in several years”. (EY-Parthenon, January 2026)

What does this week’s M&A activity tell us?

While IPO volume measures new companies joining the stock market, the M&A market this week tells a related but different story: London-listed companies are attracting overseas buyers at a record pace, partly because of the same valuation discount that has been making UK listings appear cheap.

In a single week in early July 2026:

• EasyJet: US private equity firm Castlelake agreed in principle to acquire easyJet for £6.90 per share, valuing the airline at up to £5.5 billion — a 73% premium to the pre-bid price (Reuters, 5 July 2026)
• ITV: Sky agreed to buy ITV’s media and entertainment division for up to £1.6 billion, with ITV Studios remaining listed as a standalone company (ITV, 6 July 2026)
• Novartis/Myricx: Swiss pharma giant Novartis announced the acquisition of UK biotech Myricx for up to $1.5 billion (Sharecast, 6 July 2026)

Reuters noted that “the British market is on course to set a mergers and acquisitions record in 2026 as weaker valuations among London-listed companies attract buyers” (Reuters, 5 July 2026). This is the paradox at the heart of the London story: the same valuation discount that attracts takeover bids is also what has been prompting some companies to consider listing in New York instead.

For more on accessing IPO opportunities, see IG’s guide to upcoming IPOs to watch.

Is the recovery real? The counterarguments

The optimistic narrative has genuine data behind it — but so do the counterarguments:

• Delistings outpace listings: for several years, the number of companies leaving the London Stock Exchange has exceeded those joining. The M&A wave accelerates this trend: easyJet going private would remove another major FTSE 100 constituent
• The valuation gap persists: UK equities trade at a significant P/E discount to US equities, which means companies with global investor bases often find New York more attractive for large IPOs. This structural discount has not materially closed despite the listing reforms
• H2 dependence: EY’s own Q1 analysis acknowledged the year’s pipeline was always weighted toward H2. The H1 triple is partly because H1 2025 was very weak, not because 2026 H1 was especially strong in absolute terms
• Macro headwinds: the Iran conflict has disrupted technology and software company valuations, making near-term IPO execution “more challenging for companies in affected industries” (EY-Parthenon, April 2026)

What’s coming in H2 2026?

EY describes the H2 2026 UK IPO pipeline as “strong”, with several sectors where activity is most likely:

• Defence and aerospace: NATO’s push toward 5% GDP defence spending has created a wave of defence sector investment that is beginning to flow into capital markets. Defence IPOs are expected globally in H2 2026
• AI infrastructure: despite sector volatility in early 2026, AI infrastructure companies — data centres, semiconductor design, applied AI — continue to attract investor interest
• Financial services: the UK’s fintech sector remains active, with several well-funded private companies at a stage where public markets are a natural next step

For a view on what sectors and themes are attracting investment in 2026, see IG’s guide to top investment themes to watch in 2026.

UK IPO revival summed up

• UK IPO proceeds more than trebled in H1 2026 vs H1 2025, driven by listing regime reform, stamp duty exemptions and improved sentiment (EY, 7 July 2026)
• M&A activity is also at record levels: easyJet, ITV and Novartis/Myricx all announced deals in a single week
• The recovery is real but partial: delistings continue to outpace new listings; the UK valuation discount versus US markets persists
• Q1 2026 was weak (just two IPOs); H1 strength was concentrated in Q2; H2 2026 pipeline is described as strong by EY
• Key H2 sectors to watch: defence/aerospace, AI infrastructure, financial services
• Past performance is not a reliable indicator of future results. Capital at risk.

Frequently asked questions

Past performance is not a reliable indicator of future results.