UK and Wall Street Unite to Revive London’s Struggling IPO Market

The UK government is teaming up with Wall Street to reignite London’s appeal as a global hub for initial public offerings (IPOs). Chancellor Rachel Reeves and Goldman Sachs’ investment banker Anthony Gutman will co-host a private roundtable with tech and growth-sector executives to promote London as a competitive listing destination. The Treasury aims to gather feedback on the city’s attractiveness and highlight ongoing reforms designed to strengthen capital market competitiveness. City Minister Lucy Rigby will join the discussion, while Gutman will present insights into the current IPO landscape.

London’s IPO market is facing a historic slump — proceeds dropped 69% to just $248 million in 2025, marking the lowest level in 35 years. Once a powerhouse of global equity markets, the UK capital has now slipped to 23rd place globally, behind Mexico. The largest London IPO this year, accountancy firm MHA Plc’s £98 million listing, was arranged by local firms rather than major Wall Street banks. Third-quarter figures were even worse, showing just $42 million in deal volume, down 85% year-over-year.

Goldman’s participation in a Treasury-led event is seen as unusual, offering the US bank a unique chance to pitch London to potential issuers. Yet, the partnership underscores growing concern that the UK may permanently lose ground to New York, where IPO activity has surged — particularly among AI and crypto firms. US exchanges raised $28.3 billion from 156 listings in early 2025, compared to London’s modest £160 million across five deals, its weakest showing since 1995.

Experts cite heavy regulations, ESG mandates, and high stamp duties as deterrents for startups. Critics argue that diversity quotas and environmental disclosures burden smaller firms. In response, the Treasury vows to make the UK the best place to start, scale, and list businesses, introducing new initiatives like the Listings Taskforce and potential stamp duty exemptions for IPOs.