IPO markets shows resilience in first half of 2025, proceeds rise amid economic uncertainty

Global IPO markets demonstrated resilience in H1 2025, with proceeds surging 17% year-over-year to $61.4 billion across 539 deals, driven by stronger average deal sizes despite a flat deal count and persistent volatility. The US led in volume with 109 IPOs, its most active first half since 2021, and was a primary destination for a 20-year high in cross-border listings, including 62% foreign issuers. While Asia-Pacific markets generally saw solid growth, European IPO activity declined significantly in both volume and proceeds. This period marked a clear geographic shift, with Greater China and Singapore serving as key sources, and a sector focus on industrials, energy, defense, and technology. The outlook for H2 2025 remains cautiously optimistic, contingent on accommodative monetary policy and reduced geopolitical tensions.

Analysis

The global IPO market demonstrated notable resilience in the first half of 2025, with proceeds increasing 17% year-over-year to $61.4 billion despite a flat deal count of 539, indicating a clear trend towards larger, higher-quality listings. A significant geographical divergence has emerged: the US market experienced its most active first half since 2021 with 109 IPOs and served as the primary destination for cross-border listings, which reached a 20-year global high. In contrast, European IPO activity contracted sharply, with proceeds plummeting 58% YoY. Asia-Pacific markets presented a more robust picture, with Greater China capturing one-third of all global proceeds, and South Korea and Malaysia reporting multi-decade highs in activity. Sector-wise, capital flows are aligning with strategic priorities, favoring industrials, energy infrastructure, and defense technology, while technology remains a dominant force, particularly in the US and Japan for software and Greater China for hardware. The outlook for the second half is cautiously optimistic, contingent on accommodative monetary policy and abating geopolitical risk, suggesting that companies with realistic valuations will be best positioned for successful market entry.

Key Decisions for Investors

• Investors should consider overweighting exposure to the US IPO market, which is demonstrating strong volume and attracting significant international capital, while exercising caution with new European listings until market conditions there stabilize.
• Monitor sectors aligned with geopolitical and strategic trends, such as industrials, energy infrastructure, and defense technology, for potential alpha in new issuances.
• The second-half IPO pipeline is heavily dependent on macroeconomic factors; therefore, portfolio positioning should be responsive to shifts in monetary policy and geopolitical stability.
• Given the surge in cross-border listings into the US, it is critical to apply enhanced due diligence to foreign issuers to assess governance and long-term viability.