As businesses struggle with growing interest rates, volatile markets, and unclear trade policies, initial public offerings (IPOs) have decreased globally to their lowest level in almost ten years. As of June 17, global IPO volume fell 9.3% year-over-year to $44.3 billion, the lowest level in nine years, according to LSEG data. European listings fell 64% to $5.8 billion, while U.S. IPO activity fell 12% to $12.3 billion. A regional difference in investor sentiment and regulatory conditions was highlighted by Asia-Pacific IPOs, which defied the trend and increased 28% to reach $16.8 billion this year.
Global IPO market hits nine-year low amid market volatility
Increased borrowing costs due to rising interest rates and ongoing volatility have caused many businesses to reevaluate going public. A further layer of uncertainty has been introduced by U.S. trade policies. President Donald Trump rekindled tariff tensions in April by levying targeted levies and a general 10% duty on important trading partners. Global corporations are still cautious about demand projections and capital investment, even though he later halted those actions and started talks again.
“It’s not prudent for companies to go public right now. The volatility in the market is unprecedented,” said, founder of Athena Capital Isabelle Freidheim. “There’s real risk for tech companies that are still figuring out profitability. If the stock drops after the IPO, it’s very hard to recover, especially for companies with less steady cash flow or that aren’t as mature.”
China and Japan have seen an increase in IPO in spite of the global economic downturn. Improved market sentiment and regulatory support have driven this growth.With a $4.6 billion IPO, the biggest worldwide this year, Chinese battery manufacturer CATL (3750.HK) set the standard, gaining investor confidence after the temporary halt in trade tensions between the United States and China.
According to some analysts, the second half of 2025 may see a recovery in the IPO market. When the fintech company Chime made its debut, the market responded enthusiastically, raising expectations for a wider recovery. Later this year, a number of well-known companies, such as Cerebras, Gemini, and Klarna, intend to go public.
Featured Image Credit: Nataliya Vaitkevich; Pexels: Thank You!
