The Revival of IPOs in 2025: Mapping the Capital Comeback Across Global Markets

By Hande Celik

The momentum that led to the IPO boom of 2021 left a less-than-stellar market activity in the following years. Geopolitical tensions and macroeconomic uncertainty soared in 2022, leading to a plummet in global IPO rates. Since then, there has been a steady but cautious increase in IPO listings, which built up until April of this year, when the announcement of US tariffs brought volatility back to levels last seen during the early stages of the pandemic.

The second half of this year has observed markets benefiting from declining volatility rates, resilience in investor sentiment, and a surge in risk appetite, prompting a flurry of high-profile IPOs and secondary offerings. Whilst not yet a full-blown "boom", the building momentum suggests a comeback of public listings for 2026.

The US IPO Market: Recovery in Motion

In the United States, IPO activity is steadily recovering from its post-2021 drop. According to Keith Canton, head of Americas Equity Capital Markets at JP Morgan, U.S. IPO proceeds have raised $12 billion by mid-year 2025. Though much lesser than the $100+ billion peaks of earlier years, it is still a meaningful step up from the $7 billion low in 2022. Despite the high $50 billion target for 2025 IPO proceeds staying out of reach, the market is on pace to match or exceed its 2024 levels.

Investor sentiment, while still cautious, is also improving. Volatility (as measured by the VIX) has finally settled below 20, creating a more favourable environment for IPOs. Sectors, such as tech and fintech, are leading the rebound. However, others affected by tariffs and supply chain uncertainty, like hardware and industrials remain on the sidelines.

UK and EMEA: A Tentative but Encouraging Turnaround

Nowhere has the IPO drought been felt more acutely than in London. Once Europe’s top listing venue, London has attracted only 2% of European IPO volumes this year. In H1, just £8.8bn was raised through IPOs and follow-on issuance, the lowest in 30 years. Between ongoing concerns about valuations, stalled economic growth, and increasing competition from New York, London has struggled to maintain its market appeal. That being said, recent developments suggest a potential turning point. In October, UK-based Beauty Tech Group launched a successful IPO, with shares jumping over 5% on debut. Simultaneously, Princes Group and alternative lender Shawbrook also have plans of listing, adding to the market’s momentum. US data centre company Fermi, also cross-listed in London after a Nasdaq IPO, showing renewed interest in dual-market exposure. Investor appetite remains strong, and a turnaround for London is possible through winning back issuers, especially when prominent firms, like AstraZeneca, are working to move their primary listings abroad. The next big opportunity could be a large-scale offering of Visma, a Nordic software giant, who is reportedly targeting a $20 billion valuation with a possible London listing.

India and South Korea: Leading Asia’s IPO Boom

Contrasting the hesitant recovery in EMEA, India is currently experiencing a boom in IPOs with South Korea’s LG Electronics becoming the latest global player to join this trend. Its Indian unit expects to raise $1.3 billion in an IPO, valuing the company at roughly $9.3 billion, which aligns with LG’s broader strategy of doubling its manufacturing capacity in India to establish the country as a global production hub. This IPO comes amid a flood of high-profile Indian listings, including Tata Capital, which is preparing a $1.9 billion offering, with giants like Reliance Jio and PhonePe also expected to follow along. Considering global companies are increasingly looking to India for both growth and manufacturing goods, more such listings are likely to follow.

Concluding Thoughts: Cautious Optimism Across the Board

Despite the promising indicators, the global IPO rebound in 2025 is still in its early stages, In the US, improved volatility and decent market returns are enticing both issuers and investors. In the UK, recent listings suggest a slow but real recovery is imminent, especially if regulatory reforms can attract larger deals. India and South Korea's vibrant IPO activity promises to trigger further growth within the emerging markets of Asia. Ultimately, sustained progress will depend on future macroeconomic stability, regulatory clarity, and investor appetite. For now, the signs point toward a cautious but meaningful revival.