#Japan #Tokyo #Global IPOs #EY Report #H1 2025

Overview of Global IPO Trends in H1 2025

In a significant turn of events, the global initial public offering (IPO) market exhibited remarkable resilience during the first half of 2025, as outlined in the latest report released by EY. This report presents an illuminating perspective on how markets navigated challenges and emerged with notable strength, raising a total of $61.4 billion through 539 IPOs. This represents a 17% increase in capital raised compared to the same period last year, demonstrating the strategic moves made by companies ready to adapt to an evolving capital market landscape.

Key Highlights

The most striking statistic reveals that the Greater China region (comprising mainland China, Hong Kong, and Taiwan) accounted for one-third of the total global IPO amount. While the United States led the number of IPOs with 109 listings—marking the best half-year performance since 2021—European markets saw a drop in shares, capturing only 10% of the total market. This geographic shift illustrates a significant migration of IPO activities toward Asia, highlighting the dominance of countries within the Greater China region and Singapore.

Additionally, cross-border listings reached unprecedented levels in H1 2025, comprising 14% of global transactions, with a striking 62% of US IPOs conducted by foreign companies. This shift underscores the increasing appeal of the US markets as a destination for international firms seeking public listings.

Insights from EY Global IPO Leaders

George Chan, EY's Global IPO Leader, remarked on the market's transformation, stating, "The restructuring of the IPO market across regions and sectors reflects the substantial shifts in global capital flows and investor sentiment. As the market continues to fluctuate, it becomes essential for companies to align their IPO strategies with long-term macro trends, ensuring they are well-prepared to withstand short-term volatility."

Regional Dynamics

The geographical dynamics of the IPO market present a compelling narrative. The United States achieved significant success with 109 IPOs, while the Greater China market regained its footing after years of sluggishness, particularly in Hong Kong, where the funds raised increased sevenfold compared to the previous year. On the other hand, many European markets remained stagnant following disruptions in early April, although Sweden did see a major IPO.

The Middle East exhibited ongoing strong performance, while India faced a decline in transaction volume but maintained high fundraising levels. These regional patterns signify a shifting landscape influenced by geopolitical shifts and varying strategic priorities among nations.

Sectoral Trends Influenced by Geopolitics

Geopolitical developments, along with national strategic priorities, greatly impact the sector-wise IPO environment, birthing new opportunities centered around specific fields. Notably, the mobility sector within manufacturing is flourishing due to reshoring and localized supply chains. In the energy sector, IPOs have pivoted towards strategic infrastructure, with defense technology listings gaining traction amid increasing global defense budgets. The life sciences sector continues to cultivate interest through biotechnology innovations, while the tech sector remains foundational, with the US and Japan leading in software IPOs, and Greater China contributing significantly to hardware-related listings. Digital assets and fintech are regaining momentum, led by pioneering firms in stablecoins and innovative projects driving IPOs forward.

Looking Ahead to H2 2025

As the global IPO market demonstrated resilience in H1 2025, the outlook for the second half is cautiously optimistic, with challenges expected to persist. The market recovery is contingent on a more collaborative trade climate, financial easing policies, inflation control, and the de-escalation of geopolitical tensions.

Firms presenting compelling equity stories that align with national priorities and foster innovation may find success even amidst a complex environment. Japan, however, reported a decline in IPO activity for H1 2025, recording only 28 IPOs, showcasing a 26% drop from the previous year. Large listings from non-ferrous metal companies and anticipated major IPOs from financial institutions in H2 2025 may hint at potential revival in the Japanese market.

In conclusion, the findings of EY's Global IPO Trends report reinforce the dynamic shifts occurring in the global IPO landscape. Companies aiming for IPOs must prepare strategically to tackle the evolving market realities, ensuring adaptability and prudent long-term planning to navigate the complexities of the global arena.