2021 UK IPO volumes surge, defying market uncertainty and volatility

Despite ongoing uncertainty in relation to COVID-19 and wider market volatility, analysis from KPMG’s UK Capital Markets Advisory Group has confirmed that 2021 has been a bumper year for UK IPOs. A total of 108 companies have come to market in London so far in 2021, more than 2020 (38) and 2019 (35) combined.

London’s Main Market has thrived, with 53 companies listing in 2021 to date, the most in any year since 2017. Furthermore, following a recent period of suppressed volumes, AIM IPOs have dramatically increased over the last year, jumping from 16 in 2020 to 55 in 2021, the highest number of market debutants since 2014. Helping to drive this trend is the pent-up investor demand which has built over the COVID-19 period for attractive IPO candidates, as well as generally strong equity market conditions.

Linda Main, Head of KPMG’s UK Capital Markets Advisory Group, said: “As the UK, once again, enters increased COVID-19 related restrictions, the course of the pandemic continues to cause uncertainty for all. However, 2021 proved that investor demand for new equity issues remains incredibly resilient despite these unknowns, and the IPO pipeline suggests this trend will carry forward into 2022.”

“One key focus point during 2021 was the aftermarket performance of IPOs. Our analysis shows post-IPO performance widely diverged by company with 39% of large listings recording share price drops, compared to only 13% of equivalent companies in 2019 (the most recent comparable year). Generally, where share price performance has disappointed, it can be attributed to company-specific factors, therefore, companies looking to IPO should not be put off.”

Meanwhile, Further Issue fund raises experienced a reduction year-on-year – down 29% to £24.5 billion. However, they were still up on 2019 levels (£15.7 billion), with many companies raising cash to chase growth opportunities rather than to simply ensure survival.

Linda Main added: “Funds raised through Further Issues reached record levels (£34.3 billion) during 2020, as listed companies tapped into their investor base to access liquidity during uncertain, and for many, challenging, trading conditions. 2021 saw a partial return to normality, with Further Issues considerably lower year-on-year, and whilst a number of businesses continued to raise funds to support survival and recovery, others identified opportunities to invest in organic and inorganic growth.”

In terms of key sector activity, Financial Services and TMT dominated, with IPOs in the Financial Services sector accounting for approximately 35% of total Funds Raised. This was largely driven by the market debut of 19 funds or investment vehicles, compared to only nine and six in 2020 and 2019 respectively. TMT also accounted for almost a third (32%) of total Funds Raised. Most notably, Deliveroo was this year’s largest IPO, raising £1.5 billion and opening with a market capitalisation of £4.9 billion.

As an IPO venue, the UK fared well compared to its European peers, managing to retain its position as the leading European market: total IPO funds raised in London were £13.9 billion, ahead of Stockholm (with Funds Raised of approximately £9.4 billion, including £1.7 billion raised by the IPO of Volvo) and Amsterdam (£7.2 billion) and Frankfurt (£6.9 billion).

Svetlana Marriott, Partner in KPMG’s UK Capital Markets Advisory Group, said: “It’s fantastic to see London keeping its status as the leading European market as we continue to grapple with the knock-on effects of the pandemic. Next year, updates to UK listing rules will be in effect, designed to make London even more competitive. This should help the capital retain its leading position, but IPO candidates will need to assess any impact of these changes on their listing plans.”

Svetlana Marriott concluded: “In addition, ESG will continue to grow in importance for shareholders in the aftermath of COP26. However, the lesson from 2021 is that all IPO candidates must clearly communicate their ESG impact to potential investors as part of their equity story and IPO diligence, forming a key focus of pre-IPO readiness.”



Sources used:

UK IPO data and further issues: Primary markets New issues and IPOs Reports | London Stock Exchange

  • The data was extracted from the above LSE website for both “New Issues and IPOs” and “Further Issues”, which were both filtered for the date range 01/01/19-30/11/2021
  • IPOs have been classified as per LSE criteria, reflecting “New Company Placings” only
  • IPO funds raised are based on Total Funds Raised (including new and already issued shares)
  • IPO sectors were categorised by KPMG based on FTSE Sector and Subsector characteristics
  • Further Issue volume numbers exclude any equity issues where no funds were raised
  • Aftermarket performance was calculated as the variance between the Issue Price per the LSE data set above, and the closing share price as at 30/11/2021 as per Yahoo Finance

European IPO data: https://www.fese.eu/statistics/#ipo

  • Funds Raised values were based on Investment Flow values for newly and already issued shares
  • Amounts were translated from EUR to GBP using HMRC December 2021: monthly exchange rates – the exchange rate being £1 = €1.1907
  • Euronext IPOs were allocated to individual exchanges (e.g., Amsterdam, Brussels, etc.) based on the country of incorporation of the company


For media enquiries, please contact:

Lizzy Chesters, Media Relations Manager, KPMG in the UK


Or call the UK media team on 0207 694 8773



KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff. The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

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