The London Stock Exchange recorded a modest recovery in initial public offerings during the first half of 2026, with companies raising £577m across seven new listings, according to analysis by EY-Parthenon.

The total represented a 215 per cent increase on the £183m raised during the same period last year, although activity remained well below historic levels. Three companies listed on the main market, while four joined AIM.

Momentum strengthened during the second quarter, when five IPOs raised £564m, accounting for almost all capital raised during the six-month period and marking a 422 per cent increase on the same quarter in 2025.

The improvement comes as easing inflation and lower oil prices have raised expectations of further interest rate cuts, creating a more supportive environment for capital markets. However, continued volatility in AI-related stocks has made it more difficult for some companies to pursue public listings.

Scott McCubbin, UK and Ireland IPO leader at EY-Parthenon, said the market was continuing to recover despite an uncertain backdrop. "While activity remains below historic averages, the direction of travel is encouraging," he said. "Listing windows are becoming more frequent, and well-prepared companies with a clear equity story, strong financial fundamentals and flexibility on timing will be best positioned to act."

Globally, IPO activity accelerated more sharply. Companies completed 509 public offerings during the first half of the year, raising a combined US$193.6bn, more than triple the proceeds recorded a year earlier.

The United States led global markets by value, raising US$128bn, aided by what EY-Parthenon described as the largest IPO on record. Greater China recorded the highest number of listings, with 163, followed by India with 102 and the US with 72.

Technology-related sectors continued to dominate issuance, with semiconductors, data centre infrastructure, robotics and advanced manufacturing attracting strong investor demand as companies sought to capitalise on growing interest in artificial intelligence.

EY-Parthenon said improving aftermarket performance had also encouraged venture capital and private equity investors to return portfolio companies to the public markets after delaying exits during more challenging market conditions.