Global IPO Market Rebounds in Q3 2025 Amid Investor Confidence

In the third quarter of 2025, the global IPO market witnessed a significant surge, signaling a rebound fueled by rising investor confidence and major indices hitting new highs. Despite this recovery, IPO activity remained selective, with investors scrutinizing fundamentals, profitability pathways, and governance structures. Leading this resurgence were the US, India, and Greater China, with Europe showing signs of revival while the Middle East and parts of Asia-Pacific experienced modest growth.

The latest EY Global IPO Trends report highlighted the robust recovery in global equity markets during Q3 2025, supported by favorable market conditions, easing monetary policies, and strong corporate earnings. George Chan, EY Global IPO Leader, emphasized the acceleration of global IPO momentum driven by macro trends, AI-driven disruptions, geopolitical complexities, and the need for compelling narratives that resonate with investors’ long-term value creation goals.

The broader recovery in the global IPO market was evident with a 19% year-over-year increase in deal volume and an impressive 89% surge in proceeds during Q3 2025. The US led the rebound, while India demonstrated remarkable momentum, and Greater China and the Middle East sustained their pace. Europe also showed signs of revival, bolstered by regulatory reforms and an improving macro backdrop.

Regulatory frameworks worldwide are evolving to enhance competitiveness, attract innovative firms, and ensure investor protection. Stock exchanges are streamlining listings, while regulators are balancing innovation with safeguards to reduce volatility and restore investor confidence. Private equity firms are increasingly turning to IPOs as a viable exit strategy, leading to a significant rise in PE-backed IPO listings, especially in sectors adapting to AI and digital transformation.

Market sentiment remains optimistic globally, supported by monetary easing, robust corporate earnings, and lower market volatility. Despite ongoing tariff disputes and political uncertainties affecting market sentiment, investors are seeking resilient business models that can deliver sustainable growth. Companies planning to go public must anticipate and adapt to these shifts by aligning their strategies with external changes and communicating a forward-looking, resilient equity story that resonates with investors.

The transition to a new economy, characterized by climate adaptation, digital transformation, and geopolitical recalibration, necessitates IPO candidates to align their narratives with macro trends, manage external risks, and articulate strategies that ensure long-term value creation. Resilient optimism, along with strong corporate fundamentals and investor confidence, is expected to drive continued momentum in the global IPO market. For more insights, refer to the EY Global IPO Trends Q3 2025 report.