Global IPO markets staged a sharp recovery in the third quarter of 2025, signalling renewed investor confidence after nearly two years of subdued activity. According to EY’s Global IPO Trends report, a combination of monetary easing, resilient earnings, and falling volatility has reignited deal flow across major financial centres.

A total of 370 IPOs raised US$48.2bn during the quarter, marking a 19% rise in listings and an 89% increase in proceeds year on year. For investors, the rebound suggests a gradual return to risk appetite as central banks shift toward looser policy and inflation continues to ease. For issuers, it highlights a growing willingness among investors to back new listings with longer-term growth potential.

The US achieved its strongest quarter since the end of 2021, while Europe saw proceeds rise sixfold compared with the previous quarter. Asia also remained active, led by India, which has now become the world’s busiest IPO market by volume.

Fergal McAleavey, corporate finance partner at EY Ireland, said the change in tone was striking. “We’re seeing a much more constructive global environment for IPOs after what has been a challenging period. Investor sentiment is improving, and global markets are showing signs of renewed strength, with major indices trending upwards and IPO activity rebounding across key regions,” he said.

India drives global deal volume

India has emerged as the clear outlier in global IPO activity, accounting for 254 listings in the first nine months of 2025, more than any other market worldwide. October alone is expected to generate over US$5bn in deals, including offerings from Tata Capital and LG Electronics India.

The surge reflects the depth of domestic investor demand and steady corporate earnings across sectors such as fintech, renewables, and manufacturing. With an increasingly mature capital market and a growing retail investor base, India’s primary market is showing structural resilience that contrasts with more cautious sentiment in Western markets.

EY’s report notes that India’s pipeline is both broad and diverse, encompassing state-backed enterprises and high-growth private firms. The pace of activity, combined with disciplined pricing and positive aftermarket performance, has drawn global attention to India as a potential model for sustainable IPO growth.

“The scale and diversity of listings we’re seeing there reflects a maturing capital market with deep local support,” McAleavey said. “This level of domestic engagement offers a valuable lesson for European markets, including Ireland, where unlocking local capital and improving retail investor access could help revitalise IPO activity.”

Europe regains its footing

While still down 36% year on year, Europe’s IPO market showed meaningful signs of recovery in Q3. The region recorded 72 IPOs in the first three quarters of 2025, raising US$9.3bn, with proceeds in Q3 nearly six times higher than in Q2. Switzerland, Sweden, Spain, and Germany led the rebound, with major listings including SMG Swiss Marketplace Group, Aumovio, and Ottobock.

Real estate, hospitality, and construction sectors contributed the highest number of deals, while technology continued to dominate in terms of capital raised. Regulatory reforms such as the EU Listing Act and revisions to sustainability disclosure rules (CSRD) are expected to further simplify the listing process and improve competitiveness.

Recent high-profile debuts have helped to lift sentiment. Klarna’s US listing and Beauty Tech Group’s London debut signalled renewed appetite for high-growth issuers, while Verisure’s €3.2bn flotation marked Europe’s largest listing in three years.

For Ireland, the pipeline remains thin, but policy changes could lay groundwork for recovery. As part of Budget 2026, the Irish government announced the removal of Stamp Duty on share transactions for listed companies with market capitalisations below €1bn, a move designed to improve liquidity and reduce barriers to investment in smaller firms.

McAleavey said Ireland’s fundamentals remained solid despite the absence of domestic IPOs so far this year. “We expect M&A activity to pick up as global conditions stabilise,” he said. “With strengths in fintech, medtech and AI, there are many Irish companies positioned well to participate in future IPO waves.”

US recovery anchors investor confidence

In the US, IPO volumes and proceeds both rose sharply, driven by resilient corporate earnings and improving secondary market performance. The quarter marked the country’s most active IPO period since late 2021, with issuers benefiting from improved valuations and investor enthusiasm for technology and healthcare stocks.

The success of US listings also reflects more predictable monetary policy. As the Federal Reserve’s path toward rate cuts becomes clearer, equity markets have responded with a strong rally that has lifted investor confidence and encouraged new issuers to test conditions.

Private equity sponsors have been among the key beneficiaries of the recovery. EY data shows that PE-backed IPOs more than doubled in the first nine months of 2025 compared with the previous year. Sponsors are increasingly turning to the public markets as exit conditions improve, particularly in North America, Greater China, and the Nordics.

Broader implications for capital markets

The IPO rebound carries wider implications for capital formation and corporate finance. Equity markets tend to act as a barometer for investor sentiment, influencing merger activity, valuations, and private equity fundraising.

In this sense, the recovery may also signal renewed confidence in the real economy. Easing monetary conditions are lowering financing costs, while stable debt markets are helping companies plan for growth.

EY’s analysis suggests that investors are becoming more selective, favouring firms with resilient business models, proven profitability, and exposure to long-term structural trends such as AI adoption, digital transformation, and energy transition. The best-performing listings in 2025 have been those able to demonstrate scalable technology, predictable earnings, and clear pathways to sustainability.

From recovery to resilience in 2026

The outlook for global IPOs is one of guarded optimism. Monetary easing in the US and Europe, combined with stabilising inflation and stronger equity returns, has restored confidence in primary markets. Yet geopolitical uncertainty, tariff disputes, and regulatory divergence continue to cloud the horizon.

Investors remain highly attuned to risk, and volatility spikes could quickly derail momentum. Companies preparing for listing are therefore expected to focus heavily on scenario planning, balance-sheet resilience, and transparent governance.

As McAleavey observed, “For companies considering going public, the opportunity is strongest for those that can tap into global trends, turn AI-driven innovation into growth, and present a compelling case for long-term value.”

In the meantime, private equity-backed issuers are likely to remain active, supported by stronger post-IPO performance and investor appetite for established brands. Regional exchanges, particularly in India and parts of Southeast Asia, may continue to attract listings away from more mature markets, where regulation and disclosure demands are heavier.

Implications for corporate treasurers

For treasury and finance teams, the return of IPO momentum provides an important signal. Stronger equity valuations and improved market liquidity can ease funding constraints and lower refinancing costs, particularly for firms in capital-intensive sectors. A more open IPO window also broadens the range of financing options available to private companies seeking growth capital.

At the same time, renewed investor scrutiny brings higher expectations around transparency, ESG alignment, and cash flow management. Companies considering public listings will need to ensure that treasury functions are equipped to manage disclosure, governance, and currency risk within an increasingly complex regulatory environment.

While the recent rebound marks a turning point, sustaining momentum will depend on confidence in macroeconomic stability and continued investor engagement. For now, though, the message from global capital markets is clear: after a long period of hesitation, the appetite for public listings is returning.