EY Releases Global IPO Trends Report
Funds Raised Increase by 17% Year-on-Year
The global IPO market showed signs of recovery in the first half of this year (January to June). Despite policy uncertainties and market volatility, companies that were strategically prepared responded swiftly to changes in the capital market, thereby driving the IPO market forward.
On July 30, EY Korea, a global accounting and consulting firm, announced through its 'Q2 2025 EY Global IPO Trends Report' that the IPO market in the first half of this year raised approximately $61.4 billion, a 17% increase compared to the same period last year. However, the number of IPOs totaled 539, representing a 4% decrease from the previous year.
By region, the United States recorded a total of 109 IPOs, marking its best performance since 2021. Of these, 62% were listings by non-US companies, indicating a robust inflow of global capital into the US. The Greater China market, which had stagnated in recent years, regained its leadership by accounting for 34% of total IPO proceeds. In particular, Hong Kong saw a sevenfold increase in funds raised compared to the same period last year, ranking first among exchanges in terms of proceeds.
In contrast, Europe, which accounted for 27% of total funds raised in the first half of last year, saw its share drop significantly to 10% this year. Following financial market turmoil in early April, IPO activity contracted in most major European countries, with Sweden being the only exception by achieving an outsized IPO. The Middle East maintained a stable trend, while India saw a decrease in the number of deals but sustained a high level of funds raised.
In Korea, a total of 38 IPOs were completed in the first half, a 31% increase year-on-year, marking the second-highest first-half performance in the past 22 years. The amount raised grew by 24% to $1.52507 billion, ranking fourth globally in terms of the number of deals and tenth in terms of funds raised. While the second quarter showed a somewhat subdued trend, similar to the global market, the strong performance in the first quarter, led by the large-scale IPO of LG CNS, contributed to overall solid results. Both the technology and health/life sciences sectors saw growth in the number of deals and funds raised compared to the previous year, and the advanced manufacturing sector maintained a steady flow, mainly through smaller deals.
The report stated, "Although a cautious atmosphere persisted across the domestic market in the first half due to political instability and financial market volatility, investor sentiment is recovering alongside a stock market rebound following the June presidential election. In addition, regulatory improvements by financial authorities, such as enhancements to listing review and delisting systems, are bringing positive changes to the IPO environment."
The report also analyzed that geopolitical risks and the trend of fostering national strategic industries have brought changes to the sector distribution in the global IPO market. The report noted, "With supply chain restructuring and reshoring trends, the industrial sector centered on mobility is gaining attention, while defense technology and energy infrastructure companies are also attracting significant interest due to the expansion of global defense budgets." In the life sciences sector, IPOs are being driven by bio-innovation, and in the technology sector, US and Japanese software companies and Greater China hardware companies are leading active IPOs. Digital assets and fintech are also gaining new momentum, with leading stablecoin companies standing out in particular.
Regarding the global IPO market outlook for the second half of the year, the report projected that the market could become more active if conditions such as monetary policy easing, inflation stabilization, recovery of trade cooperation, and alleviation of geopolitical risks are met. It especially emphasized that companies aligned with national strategies and technological innovation, and those able to present a credible narrative and realistic valuation, are likely to have a higher chance of success going forward.
Park Jungik, Head of Assurance Markets and IPO Leader at EY Korea, stated, "Establishing strategies aligned with long-term trends and thorough preparation are crucial even amid short-term volatility. Companies preparing for listing should communicate with the market through sustainable business models, long-term vision, and fundamentals-based storytelling to pass the strengthened market review. Additionally, considering a dual-track strategy?pursuing both IPO and M&A exits depending on market conditions?will also be effective."
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