Global IPO Market Trends: 2025 Review and 2026 Outlook
January 15, 2026
Drawing on activity across the United States, Europe, East Asia, the Middle East and Latin America, we examine the market dynamics and complimentary regulatory and macro-economic settings that drove IPO volume and valuations to surge in 2025 and offer insights for the year ahead.
Overall, while 2025 IPO activity remained uneven across regions, the IPO landscape at a global level saw a year of robust growth in terms of number of issuances and deal values, even amid policy and geopolitical uncertainties.[1] As the market conditions underpinning 2025’s IPO surge continue into 2026, and regulatory reforms around the world continue to encourage more issuances, it is likely that 2026 will continue to see a remarkable level of IPOs. As such, issuers contemplating IPOs in the next 12 to 24 months may find increasingly receptive markets, though geopolitical and regulatory uncertainties continue to require thoughtful preparation and strategic flexibility.
Key themes across markets include
- Strength in Finance, Technology, AI, Infrastructure and Defense. These sectors show outsized investor interest globally, often serving as the backbone of regional IPO pipelines.
- Private Equity as a Persistent Catalyst. Sponsor-backed IPOs continue to anchor issuance windows, especially in the United States and Europe.
- Improved Issuance Conditions as Rates Decline. Easing monetary policy across multiple jurisdictions is lifting valuations and reducing financing costs, enabling issuers to revisit delayed listings.
- Regulatory Transformations. Around the world, regulators implemented reforms in 2025 aimed at strengthening capital markets and attracting IPOs.
United States
U.S. IPO activity accelerated in 2025. Approximately 202 companies with a market capitalization over $50 million priced IPOs in the United States in 2025 compared to 150 in 2024.[2] In a year marred by episodic volatility stemming from tariff policy uncertainty, geopolitical tensions and the late-year U.S. government shutdown, the surge in IPO activity in 2025 demonstrated the strength of investor demand for new issuances.
Technology-driven companies, particularly those specialized in digital infrastructure and cybersecurity, consistently priced at the top of their ranges and delivered strong post-IPO performance, producing multiple notable IPOs in 2025. The year also saw a resurgence in sponsor-backed IPOs and SPACs, each rising to levels not seen since 2021 in terms of number of issuances.[3]
A notable market narrative is the continued interest in public company reincorporation out of Delaware, spurred by concerns over litigation trends and high-profile cases. In response, Delaware enacted reforms to the Delaware General Corporation Law in 2025 aimed at mitigating perceived litigation risk and reinforcing the state’s leadership position for corporate domicile.[4]
2026 Outlook for the United States
Market dynamics largely underpinned the surge in U.S. IPO activity in 2025. Namely, a backlog of sponsor and VC-backed companies that had reached maturity coincided with a pent-up demand for IPO-ready companies with strong growth profiles. Going into 2026, this supply and demand dynamic is expected to continue. IPOs will likely be bolstered further by anticipated deregulation by the Securities and Exchange Commission (SEC) and forecasted declines in interest rates.[5] Moreover, the late 2025 U.S. government shutdown resulted in deferred IPOs from well-known issuers that will now likely occur in 2026. Databricks, Canva and Plaid are among those anticipated to test the market.
Europe
In 2025, European IPO volume dropped 20% to 105 deals, and proceeds decreased 10% year-over-year to $17.3 billion.[6] Yet issuance strengthened meaningfully later in the year as monetary easing supported valuations. Switzerland, Sweden, Spain and Germany saw several large, high-quality listings. Additionally, a surge in London IPOs in Q4 lifted hopes for an IPO revival that may continue into 2026.[7]
Private equity-backed IPOs more than doubled year-over-year, aided by anchor investors and early book momentum, features increasingly central to European execution strategies.[8] While cross-border listings declined, Europe produced several notable U.S. listings, including the $1.4 billion IPO of Klarna Group.
Regulatory recalibration across the UK and EU, including reforms to listing and prospectus regimes, tax incentives for post-IPO trading and relaxed French and Belgian disclosure rules, reflects an ongoing effort to enhance the competitiveness of European capital markets. In Italy, policymakers are advancing proposed capital markets reforms, including an optional, simplified governance regime for newly listed issuers, that aim to reduce administrative burdens and enhance the attractiveness of Italian exchanges for domestic and cross-border IPO candidates.[9]
2026 Outlook for Europe
Banks anticipate a strong start for European IPOs in 2026, with active pipelines building across defense, industrials, financials and technology. Dual-track processes are expected to increase as private equity sponsors seek liquidity in a favorable macro environment. The effectiveness of the EU Listing Act in 2026, as well as adjustments to ESG reporting frameworks, may further reduce compliance burdens and facilitate capital formation. Geopolitical risks and trade tensions remain risks to European IPO activity in 2026.
East Asia
Korea
Bolstered by a Q4 surge in IPOs, the Korean IPO market reversed an early-year lull in 2025 and produced year-over-year gains in net IPO proceeds.[10]
Regulatory reforms accelerated in 2025 as the government undertook multiple amendments to the Korean Commercial Code, expanding shareholder rights, strengthening board independence requirements, mandating hybrid shareholder meetings and advancing cumulative voting standards.
Hong Kong
In the 25th anniversary of the Hong Kong Stock Exchange’s founding, Hong Kong reestablished itself as one of the world’s leading IPO fundraising venues in 2025.[11] Over the course of the year, multiple IPOs on the Hong Kong Stock Exchange each generated proceeds of over $1 billion.
Multiple factors contributed to the Hong Kong Stock Exchange’s banner year in terms of IPOs. Supported by the Chinese Securities Regulatory Commission to pursue listings on the Hong Kong Stock Exchange, multiple leading Chinese companies launched IPOs in Hong Kong in 2025. Institutional investors provided ample demand for new issuances supported by new exchange rules.[12] Additionally, financial collaboration between Hong Kong and Middle Eastern regulators further strengthened demand for Hong Kong IPOs.
2026 Outlook for Asia
In Korea, while macro risks remain, a combination of governmental reform efforts and a growing IPO pipeline, including companies such as Kbank, Musinsa and Goodai Global, positions Korea for a potential rebound in IPO activity in 2026.
In Hong Kong, analysts predict another impressive year for IPO fundraising numbers, based on the confluence of interest rate cuts in the United States, the global expansion of Chinese enterprises, China’s domestic consumption policies and Hong Kong’s ongoing capital markets reforms.
Middle East
United Arab Emirates
The UAE experienced a notable slowdown in 2025 IPO volume after several blockbuster years, with IPOs raising $1 billion in 2025 compared to $6 billion in 2024 and a high of $12 billion in 2022. The UAE also saw high-profile companies suspend IPO plans, including those of Etihad, one of two flag carriers of the UAE. Regulatory focus in the UAE shifted toward market conduct in 2025, including extensions for internal-control reporting implementation and a new licensing requirements for financial influencers.
Saudi Arabia
Saudi Arabia maintained its regional leadership in IPO activity in 2025. Large-cap listings such as Flynas and Umm Al Qura, as well as high volumes of mid-cap issuances, underscored breadth in the market. However, while IPO issuances in Saudi Arabia remained consistent in volume and deal value as in 2024, share performance of companies that listed on Saudi Exchange in 2025 have been mixed. Saudi Arabia also saw ongoing regulatory reforms in 2025, including the introduction of Saudi Depositary Receipts and ongoing liberalization of foreign investor access.
2026 Outlook for the Middle East
Across the Middle East, the 2026 pipeline for IPOs is strong, driven by postponed 2025 deals, continued sovereign asset monetization and new frameworks enabling international and dual-listing structures. Technology and fintech issuers represent a growing share of the regional pipeline.
Latin America
Brazil
After a prolonged capital markets freeze, Brazil has seen no traditional IPOs since 2021. The number of companies listed on the Brazilian stock exchange (the B3) has declined to levels last seen before 2020, underscoring the severity of the slowdown.
Mexico
Mexico emerged as one of the most active and dynamic jurisdictions for IPOs in 2025. Notable transactions in 2025 included the IPO of Fibra Next, a spin-off of Fibra Uno, which completed a $431 million IPO. As the owner of the largest industrial real estate portfolio in Mexico, this listing was a direct play on nearshoring demand for logistics and manufacturing space. Additionally, the private equity-backed natural gas pipeline operator Esentia Energy Development raised $630 million in the largest Mexican energy infrastructure IPO since 2018.
2026 Outlook for Latin America
Looking to 2026, optimism is improving in Brazil. Equity indices have reached all-time highs, the securities regulator has introduced a simplified issuance framework for SMEs and expected interest-rate cuts may reopen the IPO window, particularly for growth-oriented issuers targeting international markets. Still, persistently high real interest rates, macro-fiscal uncertainty and strong competition from fixed-income products are likely to temper a rapid recovery.
In Mexico, the expected IPO of Banamex in the second half of 2026 is positioned to be one of the year’s most anticipated global offerings. Furthermore, forecasted interest-rate cuts and regulatory reforms are likely to support valuations and broaden issuer eligibility, although the scheduled 2026 U.S.-Mexico-Canada Agreement review may introduce potential volatility.
This article was prepared with contributions from Cleary trainee solicitor, Alexander Lees, and stagiaire, Alessandro Vicari.
[1] Globally, IPO proceeds totaled $143.3 billion from 1,014 IPOs, a 21% increase compared to 2024, which saw $118.1 billion proceeds raised from 984 IPOs. See PwC, “London has strongest year for IPOs since 2021 with a strong Q4 for Europe signaling momentum for 2026” (December 31, 2025), available here.
[2] IPO figures as of December 31, 2025 by date of IPO pricing. See Renaissance Capital, “2025 IPO Market Stats,” available here.
[3] See, e.g.,PwC, “IPO markets look primed to accelerate in 2026” (December 12, 2025), available here.
[4] For a discussion of the forces driving companies to consider reincorporation out of Delaware, see our January 16, 2025 publication “Delaware’s Rocky Year–What Lies Ahead?” available here and our shareholder litigation article available elsewhere in this memorandum.
[5] The SEC announced intention to bolster IPOs through reducing disclosure requirements, de-politicizing shareholder meetings and reforming securities litigation, which may also provide headwinds for an active 2026. See, e.g., Atkins Speech, “Keynote Address at the John L. Weinberg Center for Corporate Governance’s 25th Anniversary Gala” (October 9, 2025), available here.
[6] See EY, “2025 Global IPO market key highlights and 2026 outlook” (December 17, 2025), available here.
[7] In 2025, UK IPO proceeds totaled £1.9 billion, of which £1.3 billion was raised from IPOs that occurred in Q4. While this figure is more than double the amount of proceeds from IPOs in 2024, it is much lower than 2021’s IPO proceeds, which totaled £16.8 billion. See MorningStar, “Late spurt of IPOs drives strongest year for London since 2021” (December 31, 2025), available here.
[8] See EY, “How can you navigate your IPO planning with confidence? EY Global IPO Trends Q3 2025”, supra Note 3.
[9] For a discussion of capital markets reforms in Italy, see our November 12, 2025 publication “Listed Companies and Corporate Governance: Highlights from the Capital Markets Reform,” available here.
[10] IPO proceeds increased year-over-year to ₩14.6 trillion, a 15% prior year. See MSN, “IPO proceeds in S Korea rise 14.9 pct on-year in 2025: data” (December 29, 2025), available here.
[11] Hong Kong IPOs raised proceeds of approximately HK$259.4 billion in the first eleven months of 2025, an increase of 228% when compared with the same period in 2024. See HKEX, “HKEX Monthly Market Highlights: November 2025,” available here.
[12] In August 2025, the Hong Kong Stock Exchange implemented a new rule requiring at least 40% of the shares initially offered in an IPO to be allocated to the IPO’s bookbuilding placing tranche went into effect. See HKEX, “HKEX Concludes Consultation on IPO Price Discovery and Open Market Requirements; Launches Further Consultation on Ongoing Public Float Proposals” (August 1, 2025), available here.