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Global Equity Issuance Surges Despite Economic Challenges

In a striking turn of events, global equity markets are experiencing a significant boom, with equity capital issuance reaching USD 687 billion in 2025, as reported by Dealogic’s ECM Highlights 9M25 report. This resurgence is particularly notable since it marks the highest level of market activity since 2021. The third quarter of 2025 alone witnessed an exceptional issuance of USD 271.4 billion, contributing to an overall year-to-date figure of USD 686.8 billion, demonstrating the resilience of capital markets despite various economic headwinds.

Drivers of the Market Surge

This remarkable growth in equity generation can be attributed to a robust series of initial public offerings (IPOs) in the United States, alongside a strong revival within the Asia-Pacific region. Notably, the US market has continued to rebound, overcoming fears related to geopolitical instability, fears of a global recession, and increasing bond yields. Driven by substantial investments in sectors such as cryptocurrency and artificial intelligence, U.S. IPOs raised USD 25.3 billion in Q3 2025 alone, marking the most vigorous quarter since late 2021.

However, while the overarching trend appears bullish, underlying market conditions reflect volatility, with several new listings suffering below their offer price. This volatility hints at underlying fragility amidst positive market momentum, indicating that while investor confidence remains relatively high, caution is also prevalent.

Regional Performance Overview

North America Leads the Charge

In the Americas, ECM issuance reached an impressive USD 336.5 billion year-to-date, reflecting nearly a 32 percent uptick compared to the same timeframe last year. The considerable surge is indicative of a renewed investor appetite for IPOs, with notable entries shaping the market landscape. Examples of significant listings include Klarna's USD 1.58 billion IPO, despite its initial drop below the offer price by month-end.

Asia-Pacific Revival

The Asia-Pacific region has also shown commendable growth, with ECM volumes hitting USD 227.3 billion by the end of September 2025, a robust 35% increase compared to 2024. With Hong Kong facilitating a considerable portion of these activities, reaching USD 33.6 billion in transactions, the region is experiencing a rebalancing within its equity markets, particularly from Chinese firms pursuing secondary listings. This resurgence is a crucial indicator of investment flows returning to the Asian markets as businesses strategize for growth opportunities.

EMEA's Steady Growth

In Europe, the Middle East, and Africa (EMEA), ECM volumes rose to USD 122.9 billion year-to-date, marking a solid 4% increase from the previous year. The third quarter of 2025 saw issuance amounting to USD 44.1 billion, a tangible sign of growing resilience as the region navigates through economic uncertainties.

Concerns Ahead

While the current momentum in equity markets paints a promising picture, elements such as the recent U.S. government shutdown pose significant risks for future activities. Analysts and financial experts remain cautious, understanding that shifts in policy and governance may impact investor sentiment and market momentum as we approach the final stretch of the year.

In conclusion, the sustained strength of global stock markets has propelled equity issuance to new heights, reflecting investor optimism. However, as geopolitical tensions and economic data continue to influence market dynamics, stakeholders must proceed with vigilance, closely monitoring the global economic landscape. As Sam Kerr, Head of Global ECM and Mergermarket EMEA, noted, a continuous wave of confidence remains essential for prolonging this current rally, but challenges undoubtedly lie ahead.