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The global initial public offering (IPO) market has encountered a notable slowdown since the frenzied activity of 2021. Companies weighing the decision to list publicly are confronting a complex web of economic headwinds, regulatory scrutiny, and geopolitical tension. Investors are likewise exercising caution, seeking proven profitability and sustainable growth before committing capital to new listings.
Following a record high in 2021 that saw over 1,000 US IPOs raising nearly $140 billion by mid-year, the pace of new offerings has sharply decelerated. Data reveals a drop from 181 IPOs in 2022 to 154 in 2023, before a slight uptick to 225 in 2024. Yet, 2025 has lagged far behind recent years, with only 84 IPOs through mid-June – the lowest first-half tally since 2022.
This downturn is matched by proceeds that have dwindled to approximately $13 billion in 2025, barely 10% of mid-year levels recorded in that headline 2021 window. Larger deals have been especially challenged, with IPOs raising over $100 million showing an average loss of 1% against their offer price.
Beyond the US, global IPO figures demonstrate a nuanced recovery. In 2024, worldwide listings rose to 1,340 deals, raising $126.1 billion – a modest 5% increase over 2023. Q1 2025 saw 117 IPOs globally, generating nearly $9.8 billion in proceeds, up from $6.9 billion in the prior year’s quarter.
However, these gains remain below the heights of the SPAC-fueled boom. Asia, led by Japan’s JX Advanced Metals raising $3 billion, and strategic US debuts like Venture Global at $1.75 billion, have shown pockets of strength. Europe, conversely, has experienced a muted resurgence early in 2025, reflecting localized economic and policy dynamics.
Several overlapping factors have contributed to this slowdown. Persistent inflation and risks of economic deceleration have dampened investor enthusiasm. Reduced buying power has led to macroeconomic uncertainty that discourages companies from locking in valuations through public listings.
High interest rates implemented since 2022 have elevated the cost of capital, curtailing appetite for new equity offerings. As borrowing becomes more expensive, businesses are increasingly hesitant to expose themselves to market volatility, favoring private funding or debt arrangements until conditions stabilize.
The rise and fall of SPACs have prompted regulators to tighten oversight, forcing many companies to postpone or abandon alternative listing routes. This regulatory scrutiny has extended to technology and digital asset sectors, where possible new rules on digital tokens have sown hesitancy.
Election-year nerves add another layer of complexity. The tail end of the 2024 US electoral cycle created policy ambiguity around tariffs, taxation, and corporate governance. Historical patterns suggest that election months see subdued IPO activity, as both issuers and investors await clarity on future economic policies.
Not all industries have been equally affected. Technology deals still account for roughly 25% of global IPO volume in early 2025, buoyed by AI advancements and cloud infrastructure demand. Healthcare has led the US market with the highest number of first-quarter listings, reflecting sustained investment in biotech and medical devices.
Investor focus has shifted toward companies demonstrating clear paths to profitability. Firms with large cash reserves, steady revenue growth, and realistic expansion plans are securing attention, while less mature ventures face steep valuation discounts or indefinite delays.
Despite current headwinds, there are glimmers of recovery. Filings for new IPOs have ticked upward, and standout offerings like CoreWeave and Circle have delivered positive returns post-listing. These successes could pave the way for peers considering market entry.
Companies and advisors are adopting more strategic timing, targeting windows when comparable sectors post strong debuts. This clustering effect may lead to short bursts of renewed activity if momentum builds around high-profile offerings.
As we move into the latter half of 2025, market participants should maintain cautious optimism for a rebound. Structural shifts—such as private companies staying private longer—are likely to persist, but pockets of opportunity exist for those prepared to meet heightened investor standards.
Issuers can strengthen their prospects by emphasizing transparent governance, robust financial fundamentals, and realistic growth trajectories. Underwriters and corporate advisors must continue to calibrate price ranges carefully, balancing issuer expectations with market receptivity.
The IPO market’s revival will hinge on a convergence of favorable monetary policy, regulatory certainty, and successful showcase offerings. While the path back to 2021-style volumes remains steep, a gradual restoration of confidence could set the stage for a healthier, more sustainable IPO ecosystem in the years to come.
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