The State of IPO Activity in Africa: A Comparative Analysis for H1 2025
The landscape of Initial Public Offerings (IPOs) in Africa has shown a stark contrast to the robust activity observed in regions like the United States, India, and Greater China during the first half of 2025. While these markets dominated global IPO proceeds, Africa’s performance was notably subdued, raising questions about the continent’s investment climate and future potential.
Global IPO Landscape
According to the EY Global IPO Trends Q2 2025 report, the global IPO market saw a significant uptick, with 539 listings generating $61.4 billion in proceeds—a 17% increase year-over-year. The United States led the charge with 109 IPOs worth $17.1 billion, marking its strongest first-half performance since the peak in 2021. India closely followed with 108 IPOs valued at $4.6 billion, while Greater China recorded 104 IPOs totaling $20.7 billion.
In stark contrast, Africa managed only two IPOs, collectively valued at a mere $100 million. This disparity highlights the challenges faced by African markets in attracting investment compared to their global counterparts.
Regional Comparisons
The IPO activity in Africa pales in comparison to other regions. Europe recorded 50 IPOs worth $5.9 billion, Japan had 27 IPOs valued at $3.7 billion, and the Middle East saw 36 IPOs totaling $5.1 billion. This data underscores the need for African markets to enhance their attractiveness to investors.
Factors Influencing Investor Appetite
Investor sentiment is increasingly shaped by a company’s ability to innovate, build resilient brands, and execute well-defined growth strategies. These factors are not only indicators of future performance but also reflect a company’s adaptability in a rapidly changing market landscape. As investors seek stability, the emphasis on these elements becomes crucial for attracting capital.
Sector Performance in IPO Issuance
The industrial sector emerged as the leader in IPO issuance, capital raised, and growth performance. The technology sector, while experiencing a slight decline in volume, saw a 19% increase in total capital raised compared to the previous year. This trend indicates a sustained investor appetite for digital platforms and software-as-a-service (SaaS) models, particularly in the US and Japan.
The consumer sector also secured a top-three position in global IPO volume, driven by robust activity in retail. Meanwhile, the real estate, hospitality, and construction sectors benefited from ongoing infrastructure spending, showcasing their resilience.
Conversely, the health and life sciences sector maintained steady deal counts but faced a decline in total proceeds due to smaller average transaction sizes. The energy sector’s performance was mixed, influenced by geopolitical instability and supply chain disruptions, leading to volatile commodity prices.
A Cautiously Optimistic Outlook
As of mid-2025, the sentiment in the global IPO market reflects cautious optimism. Signs of renewed momentum are evident in the US and India, with early indications of recovery in Europe and sustained activity in parts of Asia-Pacific and the Middle East. However, in London, take-private activity has outpaced IPOs, indicating a strategic shift among companies navigating public and private capital.
The potential for a global IPO market rebound hinges on several factors, including cooperative trade frameworks, accommodative monetary policy, controlled inflation, and geopolitical de-escalation. These developments could stabilize business activity and improve equity valuations, fostering renewed investor confidence.
The September-October Window: A Critical Testing Ground
The upcoming September-October period is poised to be a critical testing ground for the IPO market. Several high-profile listings are scheduled, which market participants view as a litmus test for broader investor appetite. Clear regulatory signals, a stable macroeconomic environment, and sector-specific catalysts will be pivotal in igniting IPO momentum.
However, the positive outlook could be undermined by high or unevenly easing interest rates, entrenched inflation, and ongoing geopolitical tensions, which may dampen investor sentiment.
Conclusion
The IPO landscape in Africa remains challenging, with the continent lagging significantly behind other global markets. To attract investment and foster growth, African nations must address the underlying issues that hinder their IPO activity. By enhancing regulatory frameworks, promoting innovation, and ensuring geopolitical stability, Africa can position itself as a viable player in the global IPO market, paving the way for future economic growth and development.