The global initial public offering (IPO) market is set for a robust 2025 driven by favorable macroeconomic conditions, more accommodating monetary policy and growing investor appetite for high-quality offerings, according to a new report from professional services firm EY.
Following the US election, both crypto and AI are expected to drive significant growth in the IPO market, fueled by increased investor confidence and regulatory clarity, the report highlighted.
2024 IPO performance
In 2024, the global IPO market saw a slight decline, with volumes falling by 10% and proceeds dipping by 4% compared to the previous year. The global IPO market booked 1,215 deals bringing in US$121.2 billion in proceeds.
Despite this overall contraction, the second half of 2024 saw stronger performance, driven by optimism surrounding interest rate adjustments and investor confidence in key sectors.
India emerged as a leader in IPO volumes for the first time, listing nearly twice as many IPOs as the US and more than two-and-a-half times as many as Europe.
Meanwhile, the US regained its position at the top for IPO proceeds, buoyed by strong market valuations. It reached its highest IPO activity since 2021 in terms of both volume and proceeds, with 205 IPOs raising US$33.1 billion.
The Asia-Pacific region faced ongoing challenges, with IPO activity declining by 35% in terms of deals and 51% in proceeds, marking the weakest performance in the region in years.
Tightened regulations in mainland China saw it report its weakest IPO performance by number in a decade, while Australia saw its largest decline in volume in more than 20 years.
Technology, media, and telecommunications (TMT), industrials, and consumer sectors led global IPO activity, collectively contributing to about 60% of IPO proceeds and listings.
Private equity (PE) and venture capital (VC) played a crucial role in 2024, with PE and VC-backed IPOs accounting for 46% of global IPO proceeds.
AI attracts investors
The AI sector, in particular, saw strong momentum during 2024. There are more than 600 AI companies now public and nearly half of them have debuted in the past four years, EY said in its report.
This trend is expected to continue in 2025, with approximately 60 AI companies currently in IPO registration and more than 400 others in the pipeline.
Nvidia-backed CoreWeave is the most highly anticipated AI company looking at an IPO in 2025. This AI cloud platform is targeting a valuation of over $35 billion for its IPO, which is expected to occur in the second quarter of 2025.
The company recently secured a $650 million secondary share sale, valuing it at $23 billion, and is aiming to raise $3 billion from its public offering.
Additionally, the approval of Bitcoin and Ethereum exchange-traded funds (ETFs) in the US has boosted the legitimacy of digital assets, which could drive a surge in IPO filings from crypto firms.
In terms of other factors influencing IPOs in 2025, the 2024 US presidential election is expected to have a significant impact on IPO activity, the report highlighted.
Post-election clarity on policy direction historically stabilizes market sentiment and encourages investment in various sectors, including industrials, TMT, and financials.
“After a period of slower activity, the global IPO market is regaining its momentum, supported by more favorable market conditions,” EY Global IPO leader George Chan said.
“The outlook for 2025 appears increasingly optimistic, with a strong pipeline of companies across sectors looking to capture the opportunities presented by this renewed market strength.”
In addition to CoreWeave, other companies rumored to be looking at IPOs in 2025 include AI/R, Cerebras Systems, and data center provider Switch.