The prevailing market conditions served as a defining characteristic of H1 2025, compelling many companies to rethink their exit strategies, and decide whether to stay private for longer or pursue listings with smaller float sizes. Cross-border IPO activity reached a record high in H1 2025, accounting for 14% of total global deal number. Geographic flows reveal a clear pattern: Greater China and Singapore have emerged as the dominant sources, while the US became the overwhelming destination of choice.

George Chan (陈杰), EY Global IPO Leader, says: “The realignment of the IPO market across regions and sectors reflects a deeper shift in global capital flows and investor sentiment. 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.”

Geographic realignment in the IPO landscape

The first half of 2025 was characterized by significant geographic realignment in the IPO landscape. The US led the way with 109 IPOs, marking its strongest first-half performance since the 2021 peak. A significant rebound is underway in Greater China following years of market trough. In particular, Hong Kong has reclaimed its top global IPO exchange position by proceeds achieving a sevenfold increase YOY.

In H1 2025, Southeast Asia saw a total of 48 IPOs raising US$1.4b, down from 66 deals raising US$1.4b over the same period in 2024. The most active markets during this period were Malaysia, which saw 27 IPOs raising US$896m, followed by Indonesia (14 deals raising US$428m) and Thailand (5 deals raising U$27m). Philippines and Singapore each saw 1 IPO raising US$12m and US$5m, respectively.

Chan Yew Kiang (曾友强), EY Asean IPO Leader says:

“Southeast Asia’s IPO market faced significant headwinds in H1 2025 with a sharp decline in activity, while proceeds held steady. Indonesia bore the brunt of this weakness and Malaysia emerged as the regional frontrunner. Importantly, the market’s struggles extend beyond numbers. Post-IPO performance has not been strong, with most new listings trading below their IPO offer prices.

This persistent underperformance is reshaping corporate strategy, with companies more likely to sell smaller portions of their equity in IPOs, either to retain greater control during turbulent times or because investors are showing diminished appetite for large equity injections. A notable shift is emerging in listing strategies, as regional companies explore cross-border opportunities.”

Most major European markets have hit a pause since the market turmoil in early April, although Sweden contributed a mega IPO. Strong momentum persisted in the Middle East, while India also sustained elevated fund-raising levels despite a decline in deal number.

Nuanced sector trends shaped by geopolitical dynamics

Geopolitical dynamics and national strategic priorities have played a crucial role in shaping the sectoral IPO landscape, driving opportunities at more granular levels. Industrial sector IPOs, especially in mobility, are benefiting from reshoring and supply chain localization. Energy IPOs are shifting toward strategic infrastructure, while defense tech is gaining traction amid rising global defense budgets. Life Sciences are attracting interest through biotech innovation. Technology remains foundational, with US and Japan leading in software IPOs and Greater China contributing hardware listings. Digital assets and FinTech are gaining renewed momentum, with stablecoin pioneers among the players.

Cautious optimism for H2 2025

The global IPO market demonstrated resilience during the first half of 2025 while the outlook for the second half remains cautiously optimistic despite ongoing challenges. 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.

For more insights, please refer to the EY Global IPO Trends report.