Geopolitical situation continues to put the brakes on the IPO market

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• Uncertain geopolitical situation dampens IPO activity in the second quarter
• Gains in Asia, mixed picture in the USA, weakening in Europe
• 539 IPOs worldwide – 4% less than in the same period last year. Issue volume increases by 17% to USD 61.4 billion
• Outlook: Thawing of the IPO market expected in the second half of the year
• The Basel-based company Bioversys AG remains the only company in Switzerland to go public this year, with an issue volume of just under USD 85 million

Zurich, 3 July 2025 - The results of the latest IPO Barometer from the audit and consulting firm EY Switzerland show that global IPO sentiment stagnated in the first half of 2025. A total of 539 companies around the world took the plunge – 4% less than in the same period last year. Nonetheless, the issue volume increased by 17% to USD 61.4 billion. A similar picture emerges when looking at the figures for the second quarter just ended. While the number of global IPOs declined by 14% to 241 companies, the issue volume increased to USD 31.5 billion (Q2 2024: USD 28.2 billion). Tobias Meyer, Head of Transaction Accounting and IPO Services at EY Switzerland, says: “Investors are more selective. The decisive factor for prospective stock market investors is that they have a resilient and sustainable equity story, as well as stock market fitness. These two factors are critical to the success of an IPO – and the flexibility to master an IPO in the current tight IPO windows.”

Strong growth in Asia, significant downturn in Europe

The performance of the Asian IPO market provided a ray of hope both in the quarter just ended and in the first half of the year as a whole. In the first six months of the year, the issue volume rose significantly to USD 28.4 billion (+172%). The upturn in China and Hong Kong, both of which are showing significant growth in numbers and volumes, contributed to this. The situation is much worse in Europe: the number of IPOs fell by 24% (to 51); the issue volume reached only USD 5.9 billion, compared with USD 14.7 billion in the same period last year.

In the US market, the picture is mixed. While the number of IPOs rose to 109 (+35%), the issue volume declined to USD 17.1 billion from USD 18.8 billion in the same period last year. With a total of 68 cross-border IPOs, one thing of note is that the US market is highly attractive and reliant on Asian companies, first and foremost, which account for more than half (58%) of all IPOs on US stock exchanges.

The Technology sector once again accounted for the largest share (USD 12.9 billion) of the global issue volume of around USD 61 billion in the first half of the year, followed by Mobility (USD 10.9 billion) and Real Estate & Construction. The largest IPO so far this year took place in China in the second quarter: The mobility group Contemporary Amperex Technology Co. Ltd. debuted on the Hong Kong Exchange with an issue volume of just shy of USD 5.3 billion. No European IPO has made it into the top 10 global IPOs in the past six months.

IPOs in Switzerland continue in 2025

This year, there was an IPO on the SIX Swiss Exchange. The Basel-based biotech company Bioversys AG went public on February 7 with an issue volume of just under USD 85 million. The company was created from a spin-off of ETH in 2008. Stock exchange candidates in Switzerland monitor the capital market environment, test investor sentiment and continue to adjust their schedules. Furthermore, the shareholders of the US-based Shyft Group approved the merger with Aebi Schmidt at the end of June. This will enable the Frauenfeld-based Swiss special vehicle manufacturer to definitively integrate the US-based company. The transaction is expected to be completed by the end of June and the share will be traded under the name AEBI on the NASDAQ stock exchange from July 2025.

Contextualizing the results of the current IPO barometer, Tobias Meyer, Head of Transaction Accounting and IPO Services at EY Switzerland, said: “News of potential tariffs at the beginning of the second quarter and fresh geopolitical tensions at the end kept global IPO markets on edge. In the wake of the uncertainty and increased volatility on the capital markets, it is not surprising that IPO activity was noticeably restrained. With the recent decline in volatility, the IPO climate has improved. We expect sentiment to improve and IPO activity to increase after the summer break if agreements are reached on punitive tariffs, further interest rate cuts are made and geopolitical uncertainties ease further.”

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