Global equity IPOs have experienced a significant downturn this year, largely due to a combination of factors such as heightened business uncertainty stemming from U.S. tariffs, increased market volatility, and higher interest rates. These factors have not only raised funding costs but have also made the prospect of listings less appealing for potential issuers.
According to data from LSEG, as of June 17, global IPO volume has seen a year-on-year decline of approximately 9.3% to $44.3 billion, marking the lowest level in nine years. Specifically, U.S. IPO volumes have dropped by 12% to $12.3 billion, while Europe has witnessed a sharper decline of 64% to $5.8 billion. In contrast, Asia-Pacific IPO volumes have actually risen by 28% to $16.8 billion so far this year.
The implementation of President Donald Trump’s tariffs, which initially included a 10% blanket levy along with targeted duties on U.S. trading partners, created additional tensions in April. Despite subsequent negotiations and a temporary halt on further tariffs, businesses globally remain uncertain about future demand and investment opportunities.
“It’s not prudent for companies to go public right now. The volatility in the market is unprecedented,” highlighted Isabelle Freidheim, founder and managing partner at Athena Capital. She also noted the real risk for tech companies, particularly those still navigating profitability issues. The potential for a post-IPO stock drop could significantly impact companies with less stable cash flow or those in earlier stages of maturity.
Despite the overall slowdown, China and Japan have seen a notable increase in IPO listings, driven by regulatory relaxation and improved market sentiment. Notably, Chinese battery giant CATL (3750.HK) raised a substantial $4.6 billion in what is considered the world’s largest IPO of the year so far, benefitting from renewed market momentum following the U.S. tariff truce.
Looking ahead, some analysts remain cautiously optimistic about a potential second-half recovery. Interest in U.S. IPOs is starting to show signs of resurgence, with fintech firm Chime leading the way with a successful debut. Additionally, high-profile names like Klarna, Gemini, and Cerebras are expected to list later in the year.
“With U.S., European defense contractors, and Indian consumer names also entering the IPO filing space, late-2025 could potentially deliver a textbook ‘trickle-then-torrent’ scenario if market volatility remains stable,” emphasized Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.
In conclusion, while the global equity IPO landscape has faced challenges in recent months, there are indications of potential recovery in the second half of the year. By closely monitoring market dynamics and regulatory developments, issuers and investors can navigate these uncertain times and potentially capitalize on future opportunities.
