Global IPO market finding its footing

December 2025  |  FEATURE | CAPITAL MARKETS

Financier Worldwide Magazine

December 2025 Issue

The global IPO market in 2025 has demonstrated resilience and cautious optimism despite geopolitical tensions and market volatility in recent years. Much like the wider global economy, the IPO market has experienced dramatic swings and shifts. Beginning with the chaos and confusion caused by the coronavirus (COVID-19) pandemic and continuing through a liquidity-fuelled boom, a sharp slowdown and a cautious recovery, the IPO market has had to endure a number of significant difficulties.

After widespread delays in 2020, record activity in 2021 was driven by the technology and healthcare sectors, as well as special-purpose acquisition companies, though many later underperformed, prompting regulatory crackdowns. Rising inflation, interest rate hikes and geopolitical shocks in Ukraine and the Middle East in 2022-23 caused volumes to collapse as investors demanded profitability over growth. Furthermore, US-China tensions and stricter domestic regulations constrained listings. By 2023-24, the market had recalibrated, with disciplined valuations and renewed focus on fundamentals such as governance and environmental, social and governance. The IPO market is now stabilising, with activity rebounding, led by developments in artificial intelligence (AI), biotechnology and energy transition deals.

Rebound and resilience

Emerging from persistent economic and geopolitical challenges over the past five years, the global IPO market fared reasonably well in 2025. According to GlobalData, in the first seven months, IPO proceeds rose 9.5 percent year-on-year to $56.8bn, even as the number of listings declined. This reflects a strategic shift toward larger, high-value IPOs, particularly in sectors such as technology, healthcare and financial services. Regionally, Asia-Pacific led in deal volume, with 385 IPOs totalling $28.4bn, while North America followed with 124 deals worth $21.7bn. The US and India remained key IPO hubs, though US activity was dampened by tariff-induced volatility. India, meanwhile, saw strong small to medium-sized enterprise listings and record-breaking large-cap IPOs. Compared to 2024, which saw a modest recovery from the post-pandemic slump, 2025 built on that momentum. However, investor sentiment remains fragile, and future IPO success will depend on macroeconomic stability, trade cooperation and companies’ ability to align with national strategic priorities.

The resurgence of investor interest in IPOs has also been fuelled by a broader cultural shift in how innovation is perceived and valued. As emerging technologies such as quantum computing, decentralised finance and synthetic biology gain traction, investors are increasingly looking to back companies that promise transformative impact. This has led to a more adventurous investment climate, where traditional valuation metrics are sometimes supplemented by long-term potential and strategic alignment with future societal needs.

According to EY, the IPO market has seen dramatic shifts over the past few years. In the early 2020s, there was a noticeable boom, coinciding with the worst of the COVID-19 pandemic between Q3 2020 and Q4 2021. From 2022 to 2024, however, market activity was noticeably subdued. Growth in the Americas and Europe, the Middle East, India and Africa was offset by declining activity in the Asia-Pacific region.

In Q1 2025, the IPO market shifted again. The US started strongly but stalled swiftly due to tariff-induced uncertainty introduced by the Trump administration and its rapidly evolving trade and tariff policy. Elsewhere, Asia-Pacific rebounded, Europe remained steady, the Middle East showed resilience, and India approached a potential IPO peak.

For the world economy, 2025 was characterised by uncertainty and complexity. Much of this uncertainty began in 2024, when the November US presidential election helped reshape the global IPO market. As with any change in administration, policy shifts were expected. However, the Trump administration had a significant impact, particularly regarding trade tariffs. Other factors – including inflation, monetary policy, economic forces, technological disruption and additional geopolitical developments – also influenced the market. According to EY, markets in the first half of 2025 were increasingly reactive to geopolitical developments, macroeconomic shifts and the lingering effects of 2024’s series of significant elections. According to Statista, more than 70 countries, home to over half the world’s population, held elections in 2024, contributing to heightened and unpredictable volatility across the first half of 2025.

This volatility disrupted the global IPO market in H1 2025, causing many companies that had planned to go public in the first two quarters to pause or withdraw their listings. The EY Private Equity Exit Readiness Study 2025 found that 78 percent of buyout firms were holding assets beyond their typical five-year horizon, creating mounting pressure to return liquidity to investors.

Opportunity knocks

Despite the uncertainty, H1 2025 was notable from an IPO perspective. According to EY, the global IPO market recorded 539 listings in the period, raising $61.4bn. Although flat in terms of deal count, this represented a 17 percent increase in proceeds year-over-year.

In Q2, there were just 241 IPOs, with $31.5bn in capital raised – the weakest second-quarter performance by number since 2020. However, there was solid growth in certain markets. Asia-Pacific led the way, and the Middle East stood out with robust expansion. The Americas remained stable, while Europe and India experienced declines. India saw a 30 percent drop in IPO volume year-over-year, driven by significant equity volatility over the first half of 2025.

Europe saw IPO activity decline 15 percent year-over-year across 50 listings, with proceeds falling 58 percent to $5.9bn. European investors have become increasingly selective, placing greater emphasis on profitability and resilience as key criteria for going public.

By contrast, Greater China posted robust gains in H1, recording a more than 30 percent increase in deal count and a threefold surge in proceeds, driven largely by strong investor demand. Although the Chinese mainland enjoyed a fruitful H1, Hong Kong became the top IPO market globally by proceeds in the period – a sevenfold increase compared to the previous year.

From a sectoral perspective, industrial IPO issuance led both in capital raised and growth performance, notably due to activity from India, Greater China and South Korea.

Although there was a marginal decline in volume, the technology sector saw capital raised increase 19 percent compared to H1 2024. Software companies are predominantly listing in the US and Japan, with US volumes more than doubling year-over-year, reflecting investor appetite for digital platforms and software as a service models.

The real estate, hospitality and construction sectors were strong in the US, where increased federal infrastructure funding, supportive policy mandates and an improved financing environment contributed to a robust H1.

The health and life sciences sectors saw smaller average transaction sizes, which drove total proceeds down by approximately one-fourth, although deal count remained steady.

Notable IPOs

Of the many IPOs that took place in H1 2024, several were significant successes, particularly Figma, CoreWeave and Circle. High-growth sectors have offered substantial potential but are not without risks, including market volatility, lofty valuations and unproven models.

In 2025, a number of significant IPOs occurred, particularly in the US. By early August, there were 201 IPOs, surpassing the 2024 total of 112. By comparison, Euronext had 40 IPOs, and China saw 101 new public listings on its mainland exchanges.

Perhaps the most notable IPO of 2025 belonged to Figma. The American design software company raised over $500m on the New York Stock Exchange, achieving a market capitalisation of nearly $68bn by the end of its first trading day. Initially priced at $33 per share, Figma opened at $85, briefly surged past $112 and closed at $115.50, marking a 250 percent gain – a US record for first-day IPO performance. In its preliminary Q2 results, Figma reported $9-12m in operating income on $247-250m in revenue, with year-over-year sales growth of approximately 40 percent.

The technology sector has been a hotbed of IPO activity in recent years, and 2025 was no exception. In addition to Figma, CoreWeave, the Nvidia-backed AI cloud infrastructure company, raised $1.5bn on the Nasdaq, pricing its shares at $40 and achieving a fully diluted valuation of $23bn. Shares opened slightly lower at $39 and closed flat amid broader tech market declines. Despite scaling down from an initial target of $2.5bn and a $32bn valuation, CoreWeave’s debut marked the largest US tech IPO since 2021 and the first pure-play AI infrastructure listing.

Other notable mentions that launched significant IPOs include Circle, a payment technology company managing stablecoins, Chime Financial, a fintech company offering mobile banking, and SailPoint, a key player in identity management and security. Outside the technology space, Smithfield Foods and Venture Global also went public.

Looking ahead, several IPOs could make 2026 a banner year. Although no date has been set, UK digital bank Monzo is preparing for a significant IPO in 2026 with Morgan Stanley, aiming for a valuation over £6bn. Monzo last raised capital in 2023, reaching a valuation of £4.5bn through a combination of primary and secondary share sales.

There is also considerable speculation around IPOs for companies such as SpaceX, Revolut, Discord, Klarna and, perhaps most interestingly, OpenAI. Speculation around OpenAI’s potential IPO intensified in September following an announcement that it had reached a non-binding agreement with Microsoft that could allow the AI startup to restructure and eventually go public. At the time of the agreement, OpenAI was valued at around $500bn in private markets. Microsoft has invested at least $13bn in OpenAI since 2019 and shares revenue from ChatGPT and OpenAI’s other tools. Under the restructuring plan, OpenAI’s nonprofit parent company will continue to hold authority over the for-profit business while receiving an equity stake worth more than $100bn, according to a memo from Bret Taylor, chairman of OpenAI.

These potential offerings from OpenAI, Monzo and others reflect the wider bullishness surrounding the technology sector. Optimism is evident in the levels of funding entering the space. Investor money has continued to flow into technology at a considerable rate, helping the Nasdaq reach record levels. In July 2025, Figma more than tripled in its NYSE debut, and a month earlier, shares of crypto firm Circle soared 168 percent in their first day of trading.

According to CB Insights, there are more than two dozen venture-backed US technology companies valued at $10bn or more, many of which may be well positioned for a lucrative offering.

The new currency of IPO success

While there is considerable optimism around future listing opportunities – particularly under the Trump administration in the US – challenges and pitfalls remain. These include companies being overhyped, the relative immaturity of some firms, unproven business models, volatile earnings, limited historical performance data and the prospect of valuation compression post-IPO.

Another emerging trend is the rise of dual listings, where companies choose to list on multiple exchanges to maximise visibility and access to capital. This strategy has been particularly popular among firms with global operations or those seeking to tap into both Western and Asian investor bases. While dual listings can introduce regulatory complexity, they offer significant advantages in terms of liquidity and brand recognition.

As the IPO landscape continues to evolve, the importance of narrative and storytelling in investor communications has become more pronounced. Companies that articulate a compelling vision, backed by credible data and leadership, are more likely to attract investor interest. This shift underscores the growing role of strategic communications and investor relations in the IPO preparation process.

Cautious optimism surrounds the wider global IPO market. Although an uptick in activity is possible in 2026, much will depend on cooperative trade frameworks, accommodative monetary policy, controlled inflation and geopolitical de-escalation. Confidence remains fragile amid ongoing geopolitical and macroeconomic uncertainty, but there is significant potential, particularly in the technology sector. Despite the uncertainty that has permeated the global economy in recent years, the IPO pipeline appears strong. 2026 may yet be the year of the IPO.

© Financier Worldwide

BY

Richard Summerfield