The journey from market freeze to vibrant resurgence reveals patterns that investors and companies must decipher.
From Bust to Frenzy-Lite
After a record 2021 in the US with roughly 397 IPOs and about $140 billion raised, subsequent years saw a sharp decline as market sentiment cooled and deal volumes plummeted.
By 2024, a multi-year recovery trend emerged globally. Total IPO proceeds rose from US$120.13 billion in 2023 to US$126.10 billion in 2024, with about 1,340 offerings worldwide. Early 2025 data illustrate a shift toward quality: January saw 117 deals worth US$9.81 billion, up from 102 deals at US$6.86 billion a year earlier, signaling fewer but larger offerings and a preference for solid fundamentals.
The US Market Heats Up
The US IPO arena has shown a remarkable transformation. For full-year 2024, there were 150 IPOs generating US$29.6 billion in proceeds. This represented a clear improvement over 2023, though still below the pre-pandemic boom levels of 2021.
By mid-2025, data diverge depending on the source. According to Charles Schwab, through mid-June there were 84 IPOs raising US$13 billion, the lowest since 2022 and less than 10% of the mid-year proceeds in 2021. Conversely, S&P Global reports that US equity issuance via IPOs reached US$26.25 billion in H1 2025, an increase of over 80% year-over-year, marking the strongest first half since 2021. Q2 2025 alone saw 59 IPOs raising US$15.02 billion, of which 41 were SPACs contributing US$9.17 billion.
Q3 2025 maintained momentum with 65 traditional IPOs raising US$15.7 billion, nearly US$8 billion of which came in September. EY data show that traditional offerings year-to-date through Q3 have surpassed US$29.3 billion, a 31% increase year-over-year. Looking ahead, Deloitte forecasts full-year 2025 capital raised between US$45–50 billion across roughly 160 debuts. Sponsors-backed IPOs are expected to provide a significant boost, particularly in the life sciences sector, while issuers lacking clear profitability within 12–18 months may find limited support.
Key forecasts for 2025:
- US$45–50 billion in IPO proceeds
- ~160 new listings expected
- Life sciences sector to lead
- Significant sponsor-backed activity
Regional Hot Spots
The IPO environment has taken on a multi-polar character, with distinct trends across regions that challenge a one-size-fits-all narrative.
- Americas: The US rose from a slow start, surging into a reopening plus SPAC wave year, with energy transition and fintech leaders dominating headlines.
- Europe: Listings remain below pre-pandemic levels, but select successes in luxury and tech suggest a gradual recovery amid cautious investor sentiment.
- Asia-Pacific: India leads global activity, nearly tripling its IPO proceeds to US$20.99 billion in 2024, while Middle East hubs like Oman attract growing international interest.
The SPAC Surge
Within this broader frenzy, SPACs have emerged as a formidable force. In 2025, blank-check offerings have outpaced many traditional listings, accounting for 129 SPAC IPOs to date. Q2 alone witnessed 41 SPACs raising US$9.17 billion, more than half of the quarter’s total proceeds.
This marks a sharp rebound after post-2021 skepticism, with structures evolving to address regulatory scrutiny and investor demands. Despite renewed enthusiasm, SPACs exhibit a divergence from conventional IPO performance. Investors must weigh sponsor fees, deal pipelines, and redemption risks against the convenience and speed of a SPAC route. The market’s appetite for these vehicles underscores a broader phenomenon of renewed investor appetite for SPACs, but heightened due diligence remains crucial.
Driving the IPO Boom
A convergence of factors has opened the windows for issuers and underwriters alike. Understanding these drivers can inform strategic decision-making and timing for companies contemplating a public debut.
- Investor Confidence Recovered: A broad uplift in sentiment has translated into a willingness to fund well-positioned businesses.
- Low Interest Rate Environment: Persistently accommodative monetary policy has kept capital costs manageable, spurring equity issuance.
- Regulatory Clarity: Evolving frameworks for SPACs and traditional IPOs have reduced ambiguity for market participants.
- Sectors in Favor: Life sciences, energy transition, and fintech infrastructure lead demand, reflecting thematic investment trends.
- Quality over Quantity: Issuers with robust fundamentals and clear growth trajectories command premium valuations.
Conclusion: Charting Your IPO Path
The current IPO environment is characterized by intense competition for high-quality deals and a clear bias toward companies with proven value propositions. While headline-grabbing SPAC launches and jumbo offerings continue to capture attention, the underlying narrative is one of selectivity and disciplined capital formation.
For prospective issuers, the imperative is to build a compelling investment story, demonstrate a path to profitability, and choose the right timing. Investors, in turn, must focus on fundamentals, conduct rigorous due diligence, and remain attuned to evolving market dynamics.
As we navigate the nuances of 2025’s IPO frenzy, one truth stands out: success lies at the intersection of preparation, market insight, and the ability to seize windows of opportunity. By understanding regional differences, sector strengths, and structural innovations like SPACs, market participants can unlock the potential of public markets in an era defined by fewer but larger offerings and dynamic capital flows.
