Last year saw a rise in the number of initial public offerings (IPOs) on the London Stock Exchange (LSE) compared to 2024, although AJ Bell has highlighted that the average performance had declined.

Analysis by the investment platform indicated that the average share price return on UK IPOs was -3.3% in 2025.

According to LSE data, there were 22 London IPOs in 2025, including nine listings on the main market and 13 AIM listings, raising £2.1bn. This compared to 16 IPOs in 2024, which raised £766m.

Tax adviser MHA, healthcare group One Health and Shawbrook Bank were among the best performing IPOs last year, each achieving a share price return of 54%, 42.2%, and 31.4%, respectively.

At the other end of the spectrum, Wellnex Life, RC Fornax and First Development Resources saw declines in their share price of 81.1%, 69.2%, and 52.8% respectively, following their offerings.

Head of markets at AJ Bell, Dan Coatsworth, said that 2025 had been “a patchy year for UK IPOs”, both in terms of performance and volume.

“While a handful of stocks delivered strong returns, investors who bought every one of the 20 UK IPOs in 2025 would have lost money on average,” Coatsworth commented.

“In contrast, those who bought a FTSE 100 tracker fund at the start of January and sat back and did nothing for the rest of the year would have cleaned up with a 25.8% return including dividends.

“The average share price return on UK IPOs was -3.3% in 2025 when comparing the IPO offer price with the year-end market closing level – versus a 35.7% positive return on average in 2024. The top performing UK IPO in 2025 was tax and advisory services group MHA with a 54% share price return, whereas the worst performer, wellness products provider Wellnex Life, fell by 81.1%.”

Coatsworth suggested that uncertainty around tariffs and politics both in the UK and abroad, combined with mixed consumer and business sentiment and lacklustre economic growth dampened the appeal of IPOs last year.

“Companies once again sat on the sidelines, nervous about taking the plunge with a stock market listing,” he added. “Volatile market conditions towards the end of 2025 also didn’t help, as investors were spooked by a potential AI bubble and whether it might burst.

“The quality of company listings in 2025 was mixed. While some offered excitement around potential earnings growth, others looked like lame ducks with little to offer. You can have bucket loads of companies listing, but investors have to want to buy the shares for them to succeed on the market.”

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