The precarious geopolitical environment has had yet another impact with IPOs falling heavily as investors fear the future.

PwC said IPO activity on European exchanges was subdued in Q1 2026 as geopolitical and macroeconomic conditions prompted several issuers to delay planned listings. A number of IPO candidates shifted timetables into Q2 and later in the year, overall readiness remains high with advisors continuing with preparations for planned IPOs.

It added momentum from late 2025 carried into the start of 2026, with many European issuers entering the year operationally ready and progressing their IPO plans in line with expectations. However, as geopolitical volatility increased through the quarter, the IPO market gravitated towards thematic winners, most notably defence‑related companies. This meant even well-prepared companies have taken the decision to wait for more stable conditions to secure investor demand.

However, the pipeline remains strong across financial services, industrials, energy, and technology, with private equity continuing to bring a sizeable cohort of IPO ready businesses. Many of these companies are already well‑advanced in their preparations and are expected to target launches later in 2026 as market windows open.

Kat Kravtsov, capital markets director at PwC UK, said: “While near‑term volatility has paused IPO windows in the first half of the year, broader EMEA equity issuance has remained resilient, underpinned by a steady mix of secondary and primary issuance activity. IPO markets are selective rather than closed.

“Capital is increasingly gravitating towards clear thematic winners, most notably defence‑related companies, where strong sector tailwinds and resilient investor demand continue to support deal execution, pricing, and aftermarket performance despite a choppy and headline‑driven market backdrop. With that in mind, the broader IPO pipeline is increasingly weighted towards the second half of 2026 and 2027, reflecting ongoing geopolitical uncertainty, as issuers and shareholders await a more optimal window that can support both valuation ambitions and successful long‑term aftermarket performance.”

EY also reported listing activity on the London Stock Exchange in the first quarter of 2026 was muted, with just two listings.

Subdued IPO activity in Q1 follows a busy end to 2025, when issuance accelerated and market sentiment improved, it added. However, heightened geopolitical tension – particularly the conflict in the Middle East – along with sharp valuation resets in AI-linked and technology sectors has constrained activity among companies preparing to list.

“Despite the limited number of new listings, follow-on activity in London remained resilient with strong interest from domestic and international investors,” EY added.

Globally a total of 232 companies went public worldwide in Q1, raising $40.7 billion. Despite a 23% fall in overall listings, this represented a 36% year-on-year increase in proceeds. Listing activity was influenced by tariff uncertainties and the conflict in the Middle East, which unsettled financial markets and drove up energy prices.

Grant Humphrey, partner, EY-Parthenon, said: “The global IPO market entered 2026 with cautious optimism, supported by relative market stability, expectations of declining capital costs and the anticipation of several high-profile mega listings. Yet, as recent months have shown, geopolitical and policy dynamics are playing an increasingly decisive role in shaping IPO outcomes worldwide. These forces are creating tailwinds for sectors such as energy, defence, and aerospace, while demand remains resilient across areas like AI infrastructure and healthcare.

“As the year progresses, this trajectory will continue to influence market sentiment and deal flow. Many of these factors sit outside the control of any individual company, highlighting the importance of rigorous preparation and maintaining flexibility throughout the IPO journey.”

Jon Guy, Editor,

Emerging Risks