European IPO activity subdued in H1 2025 amid uncertainty: PwC

European and EMEA IPO activity experienced a significant downturn in H1 2025, with European proceeds declining to €4.0 billion from €11.5 billion in H1 2024, and EMEA proceeds falling 46% to $9.4 billion amidst geopolitical and macroeconomic uncertainties. Conversely, global IPO activity rose 18% to $58.4 billion, largely propelled by a more than 50% increase in US proceeds, driven by a resurgence of SPACs. Despite the regional slowdown, the Middle East maintained robust activity, London's broader equity market remained strong, and PwC anticipates a gradual reopening of IPO markets, emphasizing strategic considerations for issuers.

Analysis

The EMEA IPO market experienced a significant contraction in H1 2025, with proceeds plummeting 46% year-over-year to $9.4 billion due to persistent geopolitical and macroeconomic headwinds. Europe was particularly affected, with proceeds falling to €4.0 billion from €11.5 billion in H1 2024. This regional weakness stands in stark contrast to the global IPO market, which grew 18% to $58.4 billion, propelled almost entirely by the United States. US proceeds surged by over 50%, largely driven by a resurgence in Special Purpose Acquisition Company (SPAC) listings, which constituted over 40% of US IPO issuance. Despite the broader EMEA downturn, specific markets showed resilience. The Middle East remained a bright spot, with Saudi Arabia hosting 23 IPOs, including the region's largest, Flynas, which raised over $1 billion. Similarly, London's broader equity market activity was robust, supported by demergers like Anglo American's platinum business and significant secondary capital raises, even as traditional IPOs stalled. While major indices such as Germany's DAX reached an all-time high in June 2025, the outlook for a recovery in European listings remains cautious, with market participants anticipating a gradual reopening contingent on strategic issuer-specific considerations.

Key Decisions for Investors

• Investors should consider underweighting exposure to European IPO-focused strategies and overweighting US markets, given the clear divergence in activity and the strong momentum from the SPAC revival in the United States.
• Look for opportunities in Europe within the M&A and corporate restructuring space, as demergers and spin-offs from established companies like Anglo American are providing new public listings and value creation amidst a weak traditional IPO pipeline.
• Maintain a selective focus on the Middle Eastern IPO market, particularly in Saudi Arabia, which continues to show robust deal flow, but exercise caution on the broader EMEA recovery, as it is expected to be gradual and highly sensitive to macroeconomic shifts.