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Regional drivers in a global market

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Strong performance from regional IPO hubs has helped stabilize global IPO markets and lay the foundation for further gains in 2025

Local markets shape global IPO trends

Global IPO markets delivered improved year-on-year performance in 2024, with some regions contributing more than others. The outlook for 2025 remains broadly positive, although an escalating trade tariff standoff among certain major economies could weigh on activity

After an incredibly challenging two years, global IPO markets are back on an upward trajectory.

Falling interest rates in key markets encouraged IPO candidates to come to market in 2024, resulting in a five percent jump in year-on-year IPO proceeds. Momentum has carried into the early months of 2025. In the US, liquefied natural gas exporter Venture Global raised US$1.75 billion from its IPO, Chinese bubble tea maker Mixue landed a US$444 million IPO in Hong Kong and, in Amsterdam, luxury logistics company Ferrari Group performed well in early trading after listing at a market capitalization of US$818 million.

However, the headlines do not tell the full story, as global activity was driven by very local themes. While some IPO markets thrived, others had a more challenging year.

India and the Middle East were the two standout regions for IPOs in 2024. India consolidated its position in 2024 as the busiest IPO market in the world by deal count, while the Middle East delivered large, groundbreaking listings.

The US and Europe saw improved annual IPO issuance as interest rates decreased. But they still have some ground to make up to get back to pre-pandemic activity levels.

In other regions, launching new listings has been challenging. In China, domestic economic headwinds have put the brakes on IPOs on mainland stock exchanges, although Chinese issuers have been able to proceed with listings on Hong Kong and US exchanges. Meanwhile, in Latin America, activity has been hampered by sustained high interest rates in the crucial Brazilian market.

As 2025 unfolds, this regional patchwork of localized themes looks set to continue shaping the global picture.

The macroeconomic environment for IPO activity is significantly more supportive than it was a year ago, as interest rates appear to have peaked. However, the impact of the United States’ tariff policy will be felt across global markets. The US has imposed and rescinded tariffs on various trading partners, creating uncertainty for investors and supply chains.

IPO opportunities should continue to emerge in 2025, but in a more complex world, investors will be analyzing developments in global trade and using a regional lens to identify the best IPO deals.

Global IPO market overview

Global IPO proceeds improved in 2024, but while some IPO markets performed strongly, others faced a challenging year. In 2025, regional markets appear set to drive IPO themes

Close up shot of stock market sign

Firm foundations: Can US IPO markets continue to build on solid gains?

US IPO markets entered 2025 well positioned for a promising year as stabilizing interest rates, a business-friendly US administration and the pressing need for private equity firms to exit portfolio companies laid the foundation for a favorable IPO environment, but uncertainty regarding US tariffs and retaliatory actions by other nations, and continuing market volatility have weighed on early offering

Green light of Wall Street

European IPO markets rally with a focus on sustaining long-term growth

Although European IPO markets still trail pre-pandemic levels, they began an upward trajectory in 2024, with an encouraging pipeline of new IPO candidates lined up for 2025. Regulators, issuers and investors are not resting on their laurels and continue to sustain long-term growth and competitiveness

Worm's-eye view of Madrid Stock Exchange Building

APAC lifted by bumper year for Indian IPOs

The Asia-Pacific region had to contend with a slowdown in new listings in mainland China, but another bumper year for India's IPO market, which consolidated its position as the most active IPO hub globally, helped to lift overall activity in the region

Macro shot of 50 Indian Rupee

Middle East sees strong IPO activity

Long-term policy initiatives supporting the development of capital markets in the Middle East are paying off, with stock markets across the region supporting a cluster of large state-backed and private sector IPOs in 2024

Golden hour view of residential skyscrapers on Sheikh Zayed Road

Navigating complexity: LatAm presents IPO opportunities and risks

Although Latin America IPO markets look set to remain challenging in the year ahead, investors who are able to handle risk will find opportunities

Downtown Mexico City view

Local trends lift global IPO outlook

Global IPO activity showed steady progress in 2024. Although geopolitical volatility still lingers, the foundations are in place for another solid year

digital stock market photo
digital stock market photo

Local trends lift global IPO outlook

Global IPO activity showed steady progress in 2024. Although geopolitical volatility still lingers, the foundations are in place for another solid year

Insight
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3 min read

2025 has the potential to be a strong year for global IPO activity, with the year off to a solid start as global IPO deal value and IPOs for January 2025 showing gains on 2024 figures.

IPO volumes in the US and Europe are showing comparatively positive signs after a relatively quiet period, while India and the Middle East have firmly established their position as the fastest-growing IPO hubs that have the depth, liquidity and IPO pipelines to deliver deals.

While the overall outlook for global IPOs is broadly positive, the level of activity will continue to diverge among different regions as local economic themes, newfound depth in certain local markets and sector trends determine which IPO markets generate the most activity.

Against the backdrop of dynamic interplay between regional and global market drivers, some policymakers are supporting their stock exchanges by establishing frameworks to improve long-term competitiveness and attractiveness for issuers and investors.

In 2025, global IPO volume will be driven by:

  • A surge in private equity-backed IPOs: Private equity-backed IPOs will see a surge in activity as sponsors move to exit companies that have been held in portfolios for longer than anticipated. According to McKinsey, the backlog of unexited private equity portfolio companies make up a larger share of total portfolio companies than at any point in the past two decades. Private equity firms will be compelled to clear their backlog and, as stock market valuations improve, IPOs will present an increasingly attractive option for portfolio company exits.
  • Europe will be a market to watch: European IPO activity made steady year-on-year gains in 2024 and to date in 2025, but there is still a large, unused capacity in the market, as IPO issuance is still below the long-term average. However, European equity markets have a proven track record of being able to digest large equity placings. Follow-on equity offerings across Europe have been strong and accelerated bookbuild offerings have rallied back up to long-term averages. Liquidity and investor appetite are ready to support IPOs in the same way.
  • More private company IPOs in the Gulf: The growth and sophistication of IPO markets in the Gulf states have been underpinned by a pipeline of high-quality state-owned entities coming to market. In 2024, private companies also stepped up, with Talabat and Lulu Retail's breakthrough private sector company flotations. The pathway has been opened for others to follow in 2025.
  • India is in line for another bumper year: India's emergence as the most active IPO market in the world has set the country up for a blockbuster 2025. At least seven companies planning to raise at least US$1 billion are lining up their India IPOs, according to the Financial Times. Brokerage and asset management group Motilal Oswal forecasts that overall equity fundraising from IPOs in India could exceed US$23 billion in 2025. The growth trajectory of India's IPO markets in recent years still has room to run.
  • Value on offer on LatAm: Latin American IPO markets will have to contend with an uncertain macroeconomic backdrop. However, the region is teeming with profitable, low-leverage and well-run companies in growth mode, which present attractive IPO opportunities for investors who understand the region.
  • Hong Kong rising: Hong Kong stock markets have had a difficult run with large, international companies moving listings and new candidates to replace them in thin supply. However, the next 12 months appear to be promising, with Hong Kong aiming to support the raising of up to US$20 billion in new funds. Fast-growing Chinese companies with extensive international operations have often turned to the US stock markets when listing, but rising trade and tariff tensions have made this a more complex option. Meanwhile, Mainland China's stock markets have been muted as a result of slower than anticipated domestic GDP growth. Hong Kong sits in the ideal position to serve the capital and strategic ambitions of these new issuers.

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This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.

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