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Global IPO Market Resilience in H1 2025

The first half of 2025 has proved to be a noteworthy period for the global IPO (Initial Public Offering) market, illustrating a remarkable resilience in the face of market volatility. Despite significant fluctuations, the market recorded a total of 539 IPO listings, which raised US$61.4 billion in capital. This marks a 17% increase in proceeds when compared to the previous year, showcasing the adaptability of companies eager to enter public markets.

Greater China's Dominance

Notably, Greater China has emerged as a significant player, accounting for one-third of all global IPO proceeds. The United States contributed 109 listings, reflecting its strongest performance in the first half of the year since 2021. Such a resurgence emphasizes a shift in confidence among U.S. companies as they look to capitalize on the favorable market conditions available post-pandemic.

Interestingly, cross-border IPO activity reached unprecedented levels, indicating a rising trend towards international financing. In H1 2025, 62% of U.S. listings were by foreign entities, depicting a clear pattern where regions like Singapore and Greater China are becoming dominant sources of capital.

Market Characteristics and Strategic Adaptation

The prevailing market conditions have spurred many companies to reassess their exit strategies. With significant uncertainties around policies and ongoing market fluctuations, businesses are faced with the decision of whether to stay private for an extended duration or to opt for smaller float sizes for their IPOs. This climate of caution yielded unique strategic adjustments among companies, highlighting their prepared readiness for IPO engagement.

George Chan, the Global IPO Leader at EY, remarked, "The realignment of the IPO market across regions and sectors signifies a deeper shift in global capital flows and investor sentiment. Companies must align their IPO strategies with overarching macro trends to navigate volatility effectively."

Geographic Shifts in IPO Listings

The landscape of IPOs has showcased notable geographic shifts. The U.S. led the tally with 109 listings, while Hong Kong notably reclaimed its status as the leading global IPO exchange by proceeds, achieving a staggering sevenfold growth year-over-year. Conversely, many European markets have faced stagnation since early April’s turbulence, though Sweden did contribute significantly with a notable mega IPO.

This rebound in Greater China comes after enduring several years of market dips, and signs indicate robust activity in the Middle East and sustained high fundraising levels in India even when the number of deals declined.

Sector-Specific Trends Influenced by Geopolitics

Emerging geopolitical dynamics continue to shape specific sectors within the IPO landscape. For instance, the industrial sector, particularly in mobility, is drawing interest due to reshoring trends and localization of supply chains. Simultaneously, energy IPOs are aligning toward strategic infrastructure, while sectors such as defense technology are gaining prominence in response to increasing global defense expenditures. Biotech innovations are attracting immense interest as life sciences demonstrate growth amid the ever-evolving, post-COVID landscape.

Furthermore, technology IPOs remain foundational, led by strong performances from the U.S. and Japan in software listings, while Greater China focuses on hardware. The rise of digital assets and financial technology (fintech) also indicates a notable resurgence, driven by stablecoin innovation and interest in cryptocurrency.

Looking Ahead: A Cautiously Optimistic Outlook

As we transition into the second half of 2025, there remains cautious optimism regarding the global IPO market. The prospect of recovery is contingent upon several factors, including more favorable trade frameworks, accommodating monetary policies, managed inflation rates, and the reduction of geopolitical tensions. Companies that align with national priorities and present robust equity narratives alongside realistic valuations will likely thrive in this complex environment.

For further insights, please refer to the EY Global IPO Trends report, which provides a comprehensive analysis of the current state of the IPO market.

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EY aims to foster a better working world by creating new value for clients, society, and the planet while enhancing trust in capital markets. Leveraging data and AI, EY assists clients in navigating today’s most pressing challenges and trends. With services in assurance, consulting, tax, and transactions, EY operates in over 150 countries, underscoring its global reach and varied expertise.