Cobalt Holdings, a newly established cobalt investment company backed by Glencore, is emerging as a rare bright spot in the beleaguered UK IPO market.

The UK, traditionally Europe’s most active equity capital market (ECM), has had a sluggish start to the year, with total ECM volumes reaching USD 9.45bn in 2025 year-to-date (YTD).

Volumes have been driven almost entirely by follow-on offerings, which have totalled USD 9.25bn so far this year. Key block trades included two in Haleon plc (USD 3.09bn and USD 3.06bn) and another in British American Tobacco plc (USD 1.5bn).

However, IPOs, remain subdued, with only USD 205m raised YTD across just five listings. The only IPO above USD 100m was MHA plc, which priced a USD 124m listing in April.

A new cohort of potential listings—including Metlen Energy & Metals Ltd, a Greece-based energy and metals company, Ebury, a British payments group, and iForex, a Greece-headquartered fintech business—may provide a much-needed lift to the UK’s primary market.

Shein, the Singapore-based fast fashion giant, was widely expected to be a marquee listing this year but has faced hurdles, including complications from proposed US tariffs and challenges in obtaining regulatory approval.

The UK government is also actively courting high-profile IPO candidates such as digital bank Monzo and challenger bank OakNorth in a bid to revive London’s capital markets.

“The UK government is trying to grease the wheels and position London as the international equities hub,” a European ECM banker said. “Nevertheless, there is not a huge pipeline of big UK-domiciled IPOs.”

While sentiment around IPOs is tentatively improving, follow-ons remain the dominant capital-raising mechanism. Last year, the UK saw its strongest follow-on market since 2021, with volumes reaching USD 31.5bn.

Notable transactions included Haleon plc (USD 9.2bn across four deals), National Grid plc (USD 9.2bn), and London Stock Exchange Group plc (USD 3.82bn across two deals). Follow-on volumes totalled USD 22.2bn in 2023.

The asset class is expected to remain strong in 2025, contingent on stable market conditions.

By contrast, the market for convertible bonds (CBs) has been dormant. No CBs have priced so far this year, and only USD 810m was raised in 2024. Last year’s activity was driven by ASOS plc (USD 333m), Ocado Group plc (USD 321m), and Alphawave IP Group plc (USD 150m).

While still below the USD 4.92bn raised in 2021, the 2024 total was notably stronger than the CB droughts of 2022 (zero issuance) and 2023 (USD 40m).