Global initial public offering (IPO) activity showed signs of resilience in the first quarter of 2025 driven by momentum in the United States, according to a new report from global professional services network EY.
Despite heightened uncertainty driven by geopolitical shifts, trade tensions, and volatile markets, 291 IPOs globally raised US$29.3 billion, marking a 20% year-over-year increase in total deal value, the report showed.
Strong quarter of US debuts
The US posted its third-strongest first quarter for IPOs in history, with 59 listings supported by constructive market conditions early in the quarter and continued demand from international issuers.
Cross-border deals made up 58% of US IPOs, reinforcing the country’s position as a key destination for global listings.
In other regions, Asia-Pacific led in IPO volume and value, with Japan contributing the largest global IPO in Q1. There was growth in Hong Kong, South Korea, and Malaysia. However, China and Oceania remained subdued.
In EMEIA, European markets faced uncertainty from global policy changes, while the Middle East performed well, and India recorded high deal value despite lower volume.
Factors shaping the IPO market
Overall market conditions were shaped by geopolitical shifts, rising inflation expectations, and new policies from the US administration, EY said in the report.
While defense spending has boosted interest in Aerospace and Defense IPOs, new regulations have created uncertainty around ESG strategies.
Many companies are turning to AI to improve operations and strengthen their IPO positioning, particularly in the Technology, Financials, and Health and Life Sciences sectors.
“IPO candidates are increasingly leveraging AI to enhance market strategies and operational efficiencies, signaling a transformative impact on how businesses prepare for and execute public offerings,” EY said.
IPOs delayed amid volatility
Looking ahead, some companies have postponed IPO plans to later in 2025 or 2026 due to increased market volatility and weakening investor sentiment following a downturn in late March and early April with “a tariff-induced storm dashing earlier hopes of sustained peak valuations across major regions.”
Nonetheless, the US market is expected to remain active, particularly in sectors like Industrials, including Aerospace and Defense, which have strong pipelines and regulatory support.
Despite ongoing risks, a healthy global IPO pipeline and government backing for key sectors point to potential stability later in the year, EY said.
“As geopolitical tremors rewrite rulebooks, post-election policies redraw borders of opportunity and technology disruption upends expectations, success will belong to those who anchor to unshakable fundamentals, and steer through shifting environments with preparation, agility and adaptability to seize the decisive moment,” EY’s Global IPO Leader George Chan said.
Significant US listings
CoreWeave, which debuted on the Nasdaq on March 28, became the largest tech IPO since 2021 with a valuation of $23 billion. The company raised $1.5 billion at an offer price of $40. Shares traded up about 11% from their listing price on Thursday.
Earlier in March, medical device firm Kestra Medical Technologies raised about $500 million at $17 per share. The Nasdaq-listed company is up about 9% since its debut.
At the quarter-end, Newsmax was listed on the New York Stock Exchange. The right-wing media firm raised about $400 million at an offer price of $10 per share. Shares traded hands at $27 on Thursday.
- Updated with US listings -