The Evolution of the Global IPO Market: A Comprehensive Overview

1. Brief History — How We Got Here

The journey of Initial Public Offerings (IPOs) is a reflection of broader economic cycles, investor sentiment, and regulatory landscapes. Historically, IPOs have followed patterns influenced by macroeconomic liquidity and market conditions. The mid-2010s marked a period of steady IPO activity, characterized by a favorable environment for tech and growth companies. However, the onset of the COVID-19 pandemic in 2020 disrupted this momentum, leading to a significant decline in IPO activity.

As markets began to recover in 2021, a surge in tech and growth listings was observed, driven by pent-up demand and favorable conditions. Yet, the subsequent years of 2022 and 2023 brought market corrections, primarily due to rising interest rates, a reevaluation of growth assets, and regulatory changes in key jurisdictions like China and the European Union. By late 2023 and into 2024, a combination of easing market conditions, corporate readiness, and improved public market reception led to a resurgence in IPO activity. Reports from global consultancies and market trackers indicated a notable recovery in 2024, with increased proceeds and listing counts year-over-year.

2. The Numbers — Volume, Proceeds, and Notable Metrics (2023–H1 2025)

Recent data from market trackers and advisory firms reveal a significant rebound in the IPO landscape during the first half of 2025 compared to the same period in 2024. Key empirical takeaways include:

• Overall Rebound: Major reports indicate a mid-teens percentage increase in global proceeds for H1 2025, reflecting a robust recovery in IPO activity.

• Listings Count: While methodologies vary among trackers, the trend is consistent: 2024 saw an uptick in IPOs compared to 2023, with 2025 continuing this momentum. Renaissance Capital and other IPO trackers reported dozens to hundreds of IPOs in 2025, depending on their inclusion criteria.

• SPACs and Alternatives: After a lull in 2021 and 2022, SPAC activity resurfaced in 2024 and into 2025, contributing significantly to total IPO counts. Reports indicate that SPACs accounted for a substantial share of IPO activity in early to mid-2025.

3. Structural Shifts Reshaping Global IPO Markets

3.1 Cross-Border Listings and Jurisdictional Choice

A striking trend in 2024 and 2025 is the increase in cross-border listings, with more issuers opting to list outside their home jurisdictions. The U.S. regained its appeal for high-growth companies, including non-U.S. issuers, due to deep liquidity pools and favorable aftermarket performance. Advisory reports in 2025 documented record levels of cross-border listings, with a significant proportion choosing the U.S. as their destination.

Drivers:

• Liquidity and Valuation Premia: U.S. exchanges continue to offer higher valuations and deeper institutional demand for large growth names.
• Regulatory Clarity or Flexibility: Certain markets provide attractive disclosure frameworks for growth companies, while others face regulatory headwinds that push issuers abroad.
• Strategic Investor Access: Listings in target markets can attract strategic investors and enhance credibility.

3.2 Return of Alternative Listing Routes

The return of SPACs, direct listings, and IPO hybrids has reshaped the landscape. After regulatory scrutiny cooled SPAC issuance, a new generation emerged, characterized by selectivity and improved structuring. Direct listings remain a viable option for capital-rich companies seeking liquidity without traditional roadshows, altering the dynamics of going public.

3.3 Bifurcation: Mega-Deals vs. SME Venues

The IPO market has become increasingly bifurcated, with large, high-value deals dominating headlines while specialized exchanges cater to small and medium enterprises (SMEs). This two-tiered market structure features a handful of significant capital raisings alongside a broad base of smaller listings, often on dedicated SME platforms. Research from the OECD emphasizes the critical role of SME markets in fostering job creation and innovation.

4. Regional Dynamics — How Different Markets Are Behaving

United States

The U.S. equity market remains a magnet for large growth and tech companies, bolstered by deep institutional capital and active aftermarket trading. Q2 2025 saw an increase in U.S. IPOs compared to the previous year, although proceeds per deal varied. Regulatory scrutiny continues to shape market structures, particularly concerning disclosures and SPAC post-dealmaking.

Hong Kong & Mainland China

Hong Kong has regained momentum as a listing hub, particularly for resource and state-linked companies, benefiting from several large issuances in 2025. Mainland China’s reforms and new issuance windows for specific domestic sectors continue to stimulate localized IPO activity, exemplified by the Zijin Gold HK IPO in September 2025.

Europe & UK

European IPO activity has improved, aided by AIM-style venues for growth firms and regulatory efforts to encourage listings. However, fragmentation across multiple national exchanges poses challenges for pooled liquidity.

India and Other Emerging Markets

India’s primary market has been notably active at both the SME and mainboard levels, driven by domestic savings and retail participation. Local SME segments offer lower costs and scaled compliance, facilitating access for smaller issuers. Emerging markets often experience fluctuations between domestic demand surges and capital flight during global risk episodes.

5. SME Listings: Design, Purpose, and Global Models

SME listing segments are intentionally designed to lower entry costs and simplify compliance, featuring:

• Lower Minimum Capital/Float Thresholds: Reduced requirements facilitate access for smaller firms.
• Streamlined Disclosure: Ongoing reporting is often calibrated to firm size and investor sophistication.
• Investor Protection Trade-offs: More lenient disclosure can increase risk-return variability, necessitating active retail education to maintain liquidity.
• Support Services: Mentorship programs and post-listing support enhance the growth trajectory of SMEs.

Major SME market examples include AIM (London), Nasdaq First North (Nordics), BSE SME (India), and ChiNext (China). Initiatives from the OECD and UN SSE advocate for sustainability guidance to attract ESG-minded capital.

6. Why SME Listings Matter (Economic and Financial Rationales)

SME listings play a crucial role in economic development by:

• Capital Access for Growth: Public listings provide essential growth capital and an acquisition currency.
• Price Discovery & Signaling: Public markets offer transparent valuation benchmarks, aiding subsequent capital raises.
• Market Discipline & Governance: Listing enhances governance, improving managerial incentives and access to networks.
• Local Economic Development: SME listings anchor local ecosystems, create jobs, and expand tax bases, underscoring their public-good aspect.

7. Demand Side: Who Is Buying IPOs Today?

Institutional Investors

Long-only funds, hedge funds, and sovereign wealth funds dominate larger deals, increasingly demanding strong governance credentials and clear paths to profitability.

Retail Investors

Retail investors remain vital for SMEs and many mainboard deals, particularly where allocation rules favor their participation. Their interest can drive short-term pricing momentum but also introduce volatility.

Cornerstone & Long-Term Investors

For substantial listings, cornerstone investors anchor deals and signal confidence, as seen in 2025 with significant allocations to major institutional investors.

8. Sector Dynamics — Who’s Going Public?

Technology & AI-Enabled Firms

Renewed interest in tech, especially in AI infrastructure and enterprise applications, reflects investor demand for transformative productivity gains.

Energy and Resources

Listings in the energy and resources sector have surged, driven by commodity price cycles and strategic national interests. The Zijin Gold listing exemplifies this trend.

Financial Services and Fintech

The maturation of fintech companies continues to spur listings as they seek to scale.

Healthcare & Biotech

The healthcare and biotech sectors maintain a robust pipeline as research reaches commercial inflection points.

Regional Sector Mix

Sector dynamics vary by region, with Asia experiencing substantial resource and industrial deals, while the U.S. attracts high-growth tech and healthcare companies.

Conclusion

The global IPO market from 2024 to H1 2025 is not merely recovering; it is evolving. Cross-border flows, alternative listing structures, renewed investor appetite, and a robust ecosystem of SME venues are reshaping public markets into a more versatile yet complex environment. For issuers, investors, and policymakers, the challenge lies in aligning strategies with market structures: selecting the right venue, ensuring operational readiness, and designing effective investor engagement. Exchanges that successfully facilitate SME access—by lowering barriers, enhancing investor protection, and providing active post-listing support—will unlock substantial long-term economic value.