Global IPO Watch H1 2025

Highlights:

Following initial momentum in early 2025, global equity markets were impacted by macroeconomic headwinds and geopolitical turbulence.

• Although global equities had a strong start in Q1 2025, global markets sold off at the beginning of April following the announcement of US tariffs, with many indices dropping around 10% and volatility climbing to levels last seen during the early stages of the pandemic.
• Unsurprisingly, the optimism in the IPO market seen earlier in the year, particularly in the US with its busiest start since 2021, quickly faded and global IPO activity stalled as some companies chose to pause their IPO processes.
• The remainder of the second quarter, however, has been a period of recovery for global equities, driven by a 90-day pause on tariffs and more positive news around potential trade deals, which sparked a relief rally. Volatility also reduced to more normalised levels, allowing major equity indices to rebound and close higher for the first half of 2025.
• The stabilisation of the equity markets towards the end of the second quarter led to the gradual reopening of selective IPO markets, with issuers looking to restart IPO preparations. However, sentiment remains fragile, and continued recovery is highly dependent on macroeconomic and geopolitical stability.

Global IPO proceeds have increased in the first half of 2025, driven by stronger activity in the US and Asia-Pacific region.

• As of 30 June 2025, global IPO proceeds totalled $58.2bn, up $8.6bn when compared to H1 2024 which totalled $49.6bn. The increase was largely attributed to growth in the US and Asia-Pacific region, which grew 56% and 44% respectively.
• The Americas, driven by the US, was the best performing region globally in H1 2025 with IPO proceeds higher in comparison to H1 2024. The resurgence of SPACs was one of the factors contributing to this increase in the US, representing over 40% of the IPO issuance in the first half, driven by a more favourable regulatory backdrop and more established sponsors with sector expertise.
• Asia-Pacific region also saw growth in IPO activity in H1 2025 with China/Hong Kong SAR, India and Japan driving the issuance. Proceeds raised in the region were $21.3bn compared to $14.8bn in H1 2024. Interestingly, there were fewer IPOs, but on average they raised higher proceeds.
• In contrast, EMEA IPO proceeds were down in H1 2025 compared to the previous year. Whilst the IPO market slowed, a gradual and selective recovery later in the second quarter led to completion of some IPOs and new listings as volatility reduced.

The ten largest IPOs this year continued to have a more diverse industry and geographical mix than the recent past with Japan hosting the largest IPO

• The top 10 IPOs were spread across five countries, including the US, India, Japan, Saudi Arabia and Sweden, highlighting stronger positioning of the domestic exchanges. The number of IPOs out of the US in the top 10 has increased compared to last year, pointing to signs of recovery in the US IPO market.
• In H1 2025, the top 10 IPOs contributed $13.5bn to the total global IPO proceeds, representing 23%.
• Japan hosted the largest IPO in the first half of 2025 and India hosted two of the top 10 IPOs.
• From an industry perspective, whilst there is a broad representation of sectors in the top 10, covering Metals, Energy, Industrials, Healthcare and Financials, the Technology sector has been regaining momentum with 4 IPOs in the top 10. Overall, tech companies represented 13% of the global IPO issuance in H1 2025.
• Financials was the largest sector in terms of IPO proceeds raising $18.3bn and representing over 31% of the global IPO issuance. This is largely driven by a sharp increase in SPAC issuance in the US raising over $11.6bn of proceeds in H1.

Whilst the pipeline is strong, the direction of the IPO market for the remainder of the year will depend on continued market stability.

• The long-term outlook for the global IPO market is promising. A recovery of the equity markets in Q2, stabilisation of volatility and a backlog of exits are contributing factors to this promising outlook. However, it will highly depend on the global macroeconomic and geopolitical stability.
• We have seen signs of a selective reopening of IPO markets in the US and China/Hong Kong SAR and a continued supply of IPOs in India and the Middle East.
• Looking ahead to H2 2025 and H1 2026, there is cautious optimism for a further recovery in global IPO activity as companies resume their IPO preparations and a diverse pipeline of issuers across all major markets gear up to go public, subject to favourable market conditions.
• In the current market environment, shareholders and companies are likely to explore various options to crystalise value including dual tracks, demergers and secondary listings, in addition to traditional IPOs.
• Demergers and spin-offs are gaining momentum globally and it’s a theme that continues to drive equity market activity.

H1 2025 in review – Outlook

Macroeconomic and equity markets update

• The year began with continued momentum in the equity markets from 2024. However, global markets sold off at the start of April following the announcement of US tariffs, with many indices dropping around 10% and the VIX volatility index spiking above 50 as investors retreated from equities.
• The second quarter staged a significant comeback for global equities driven by a pause in tariffs, better-than-expected trade negotiations and signs of likely interest rate cuts.
• Volatility also dropped to normal levels (below 20) as the MSCI World index closed the first half of 2025 9% higher. The Stoxx 600 and the FTSE 100 both closed H1 2025 up 7%. The S&P 500 also regained ground, closing 5% higher for the first half.
• Concerns about slowing global economic growth, uncertainty regarding trade deals and the long-term impact of tariffs, as well as geopolitical instability, continue to weigh on market sentiment. Equity markets remain highly sensitive to external macroeconomic and geopolitical shocks.

IPO market outlook and key drivers

• Going into H2 2025 and H1 2026, IPO activity looks more promising as equity indices have recovered and volatility stabilised, supported by a strong pipeline of potential issuances around the world. Preparations for IPOs are expected to resume for those companies that put their listing plans on hold. There remains a growing backlog of private equity backed companies seeking to list as portfolio assets grow and mature.
• However, further recovery of IPO markets, in particular in Europe, will depend on the global macro and geopolitical stability. Headwinds persist that could negatively impact the IPO market, including uncertainty in relation to tariffs and trade deals.
• Demergers could be a way for companies to realise value over the traditional IPO process as they do not heavily rely on the broader market sentiment compared to traditional IPOs, as there is typically no primary raise and hence no price discovery process with new investors.

Index performance in H1 2025

^{Source: S&P Global Market Intelligence LLC, as of 30 June 2025}

H1 2025 in review – Region and country IPO performance

IPO performance by region

Global IPO proceeds increased by 17% in H1 2025 to $58.2bn compared to $49.6bn in H1 2024. This was largely due to the increase in the number of IPOs in the period, from 444 in H1 2024 to up to 486 H1 2025.

Americas – Leading the way for IPO activity

• Americas performance has been strong in H1 2025, with IPO proceeds up 56% from $17.6bn to $27.5bn, albeit largely driven by SPAC activity. The US led the way with the majority of IPOs in the region, with the NASDAQ and NYSE raising proceeds of $19.4bn and $8.1bn respectively. One IPO occurred on Canada’s TSX Venture Exchange with a total transaction value of $7.3m.
• Financials was the best performing sector in the Americas reflecting the SPAC rebound.
  

EMEA – Selective recovery at a slower pace

• EMEA fell behind the other two main regions in H1 2025. IPO proceeds were $9.4bn compared to $17.2bn in H1 2024 as Europe faced uncertainty in relation to policy direction and weaker macroeconomic conditions, resulting in companies delaying their respective IPO processes. However, the region saw two IPOs in the top ten.
• A provider of medical products and solutions headquartered in Sweden, was the largest European IPO in H1 2025 by funds raised. Listing on the NASDAQ Stockholm Exchange, which raised proceeds of $888m.
• The Middle East contributed over half of the IPO issuances. An international budget airline from KSA, was the largest IPO seen in EMEA in H1 2025. The IPO benefitted from strong investor demand, and it was the first IPO of a Gulf airline in almost 20 years.

Asia Pacific – Activity recovers as proceeds rise, but across a smaller number of IPOs

• Asia Pacific IPO proceeds increased from $14.8bn to $21.3bn despite 34 fewer IPOs compared to H1 2024. Bolstered by the IPO of the manufacture of chips and semiconductors company listing on the Tokyo Stock Exchange which raised $2.5bn with shares being priced at the upper end of their marketed range.
• Hong Kong's IPO market rebounded in the first half of 2025, supported by Chinese companies looking to raise money and expand abroad. The HKEX has also taken steps to attract more listings over the past few years and, according to the exchange, the number of companies applying for a listing in Hong Kong has hit an all-time high in H1 2025.
• Shares of a battery maker debuted on the Hong Kong stock exchange with a secondary listing in May this year, raising $4.6bn.
• India was the most active IPO market in the region, claiming five out of the ten spots in Asia Pacific. India’s largest IPO, a retailed focused Non-Banking Financial Company, also claimed a spot in the global top 10 IPOs of H1 2025.
• Whilst 2024 was a record year for India with a total of 149 IPOs, the National Stock Exchange saw 50 companies IPO in H1 2025 compared to 65 in H1 2024. This recent slowdown in the IPO market reflects a more cautious sentiment driven by global macroeconomic headwinds.

IPO proceeds ($bn) and volume by region (H1 2023 to H1 2025)

IPO proceeds ($bn) and volume (H1 2023 to H1 2025)