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The Resilient IPO Market of H1 2025

In the first half of 2025, the global Initial Public Offering (IPO) sector exhibited substantial resilience as it secured 539 listings that collectively raised an impressive $61.4 billion. This notable achievement reflects a 17% year-over-year increase in capital raised, highlighting the capability of companies to navigate through market fluctuations and uncertainties. The IPO landscape in this period was characterized by strategic repositioning and companies geared for adaptability in a dynamic capital market environment.

Key Insights from H1 2025

Greater China marked a significant comeback by claiming approximately one-third of global IPO proceeds, underlining its vital role in the international financial landscape. While the United States had 109 IPOs, achieving its most robust performance for the first half of a year since 2021, Europe experienced a downturn, seeing its share of IPOs shrink to a mere 10%. The trend of cross-border listings saw record highs; 62% of US listings were from foreign issuers, reflecting a more interconnected global marketplace.

George Chan, the EY Global IPO Leader, noted that the landscape's shift underscores significant alterations in capital flows and investor sentiment worldwide. The adaptability of firms in this environment has become paramount, with the ability to align their IPO strategies with evolving macroeconomic trends.

Geographic Shifts in IPO Activities

The IPO market in the United States has displayed remarkable vitality, characterized by a resurgence with 109 listings, marking the strongest performance since 2021. Meanwhile, Greater China is experiencing a rebound after a prolonged period of lower market activities. Specifically, Hong Kong emerged as the top global IPO exchange based on proceeds, recording a sevenfold increase from the previous year. Conversely, most of the European markets have paused due to preceding volatility in the markets; exceptions include significant contributions from Sweden, among others. Encouragingly, activity in the Middle East and India remains strong, reflected in heightened fundraising levels despite a decrease in the number of deals.

Sector Trends Influenced by Geopolitical Developments

Sector-specific trends have increasingly been influenced by geopolitical dynamics and national priorities. In the industrial realm, IPOs related to mobility have gained traction due to the trends of reshoring and supply chain localization. Moreover, the energy sector is shifting focus toward strategic infrastructure projects, while defense technologies are witnessing heightened demand in light of escalating global defense expenditures. The life sciences sector is garnering interest through innovations in biotechnology. Technology continues to act as a foundational element for IPOs, especially with the US and Japan leading in the software domain, while Greater China contributes significantly in hardware productions. Also noteworthy is the revival of interest in digital assets and financial technology, particularly with new developments involving stablecoins.

Looking Ahead to H2 2025

The outlook for the second half of 2025 appears cautiously optimistic. While challenges persist, the resilient performance during the first half lays a solid foundation for potential growth moving forward. The trajectory of the global IPO market will likely hinge upon emerging trade frameworks, accommodating monetary policies, inflation control, and reduced geopolitical tensions. Companies adept at aligning their operations with national priorities, showcasing credible equity narratives, and maintaining flexible timings are best positioned to thrive in the evolving market environment.

For comprehensive insights and detailed analysis on the global IPO trends, interested parties can refer to the EY Global IPO Trends report.

About EY

EY is committed to fostering a better working world by creating innovative value for clients and society while facilitating trust in capital markets. By leveraging advanced technology and data insights, EY aids clients in shaping the future with confidence. EY operates across a broad range of services, including assurances, consulting, tax, strategy, and transactions, establishing a uniquely connected network to provide global services across more than 150 countries.

Navigating the complexities of today’s marketplace requires strategic foresight and adaptability, qualities that the recent IPO activities have exemplified effectively.