Global IPO Market Likely to Regain Momentum for a Strong 2025

EY report notes rising optimism, with investors eyeing expected US policy changes

- Sue-Ann Tan

Initial public offering (IPO) activity globally is expected to be on track to deliver a strong performance in 2025 amid a cautiously optimistic economic environment and transformative forces, including the new American political administration.

"Business transformation requires funding, and an IPO offers a powerful avenue to raise the capital needed to drive growth and innovation," said EY global IPO leader George Chan.

"After a period of slower activity, the global IPO market is regaining its momentum, supported by more favorable market conditions."

Total IPO activity in 2024 fell slightly short of 2023 levels, with 1,215 IPOs raising US$121 billion (S$165 billion) in funds in 2024, compared with the 1,351 IPOs in 2023 that raised US$126 billion.

In a study by professional services firm EY out on Jan 3, the company found that there is optimism building around 2025 seeing more IPOs, with anticipated policy changes following the US presidential election attracting investor attention.

Mr Chan Yew Kiang, EY Asean IPO leader, said: "Tariffs, tax rates and regulation could have major impacts on the broader economy, mergers and acquisitions, and the IPO landscape."

Historically, IPO activity has risen in the years following US presidential elections, regardless of which party controls the majority, the report noted.