“The prevailing market conditions served as a defining characteristic of 1H2025, compelling many companies to rethink their exit strategies, and decide whether to stay private for longer or pursue listings with smaller float sizes,” say EY’s analysts.
Cross-border listings reached record highs in 1H2025, with 62% of US listings by foreign issuers.
Realignment of the IPO landscape
Global IPO proceeds are led by China, which captured one-third of the global share. The US led in the number of listings with 109 IPOs, marking its strongest first-half performance since 2021. Meanwhile, Europe saw its share decline to 10%.
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“The realignment of the IPO market across regions and sectors reflects a deeper shift in global capital flows and investor sentiment,” says EY global IPO leader George Chan.
Hong Kong, in particular, has reclaimed its top global IPO exchange position by proceeds, achieving a sevenfold increase y-o-y, EY notes.
In addition, strong momentum has sustained in the Middle East, while India also sustained elevated fundraising levels despite a decline in deal number.
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“As markets recalibrate in real time, robust IPO readiness will be essential for companies to navigate short-term volatility while aligning their IPO strategies with long-term macro trends,” Chan adds.
Sector trends
Geopolitical dynamics and national strategic priorities have played a crucial role in shaping sectoral IPOs.
Industrial sector IPOs, especially in mobility, are benefitting from reshoring and supply chain localisation. On the other hand, energy IPOs are shifting toward strategic infrastructure, while defence technology is gaining traction amid rising global defence budgets. Meanwhile, biotech innovation is driving interest in the life sciences industry, says EY.
The US and Japan are leading in software IPOs, and China is contributing hardware listings. “Digital assets and fintech are gaining renewed momentum, with stablecoin pioneers among the players,” EY says.
Cautious optimism
The outlook for 2H2025 remains cautiously optimistic despite ongoing challenges, says EY.
They note that the potential for a global IPO market rebound hinges on more cooperative trade frameworks, accommodative monetary policy, controlled inflation and geopolitical de-escalation.
“Companies aligned with national priorities and innovation, and those able to present a credible equity story with realistic valuations and flexible timing, are likely to succeed in navigating this complex environment,” they conclude.
