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Press release
04 Jan 2026
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Zurich, Switzerland
Severe slowdown in global IPO market as a result of war in the Middle East
- Q1 results: Number of IPOs down 23% year on year at 230, but volume up 36% nevertheless
- IPO activity in China exceeded last year’s level by a wide margin, while Europe recorded an 18% decline in the number of IPOs despite a 48% increase in total proceeds; in the United States, IPO numbers fell by 55%
- IPO‑market in Switzerland remains subdued; companies focusing on preparation and evaluating the market environment
- Defense industry, infrastructure and AI the key drivers of IPO activity in 2026
Zurich, 1 April 2026 – After a promising start to 2026, new geopolitical tensions and the global rise in energy prices led to a marked slowdown in the IPO market. Compared with the same period last year, the number of IPOs declined by 23% to 230, marking the lowest level in six years. Fewer IPOs were last recorded in the second quarter of the COVID‑affected year 2020, when 195 listings were completed.
Although significantly fewer companies went public, the issue volume increased by 36% to USD 40.6 billion. While the number of IPOs with an issue volume exceeding USD 500 million increased from 14 to 22, smaller listings declined sharply. The number of IPOs with a value of less than USD 100 million fell from 237 to 146.
The world’s largest IPO in the first quarter took place in Europe: the Czech ammunition manufacturer CSG achieved a placement volume of USD 4.5 billion when it first listed on the Amsterdam Euronext. These are the results of the latest IPO Barometer from the auditing and consulting firm EY.
Tobias Meyer, Head of Transaction Accounting and IPO Services at EY Switzerland, said: “The first quarter of 2026 clearly shows how strongly geopolitical uncertainty and macroeconomic factors are impacting the IPO‑market. While many companies are postponing their stock exchange plans for the time being, we are still seeing targeted activity in large-volume transactions – particularly in Europe.”
Geopolitical uncertainty shapes global IPO markets
The deepening of the crisis in the Middle East has had a noticeable impact on global IPO markets: IPO activity has fallen to a six‑year low, accompanied by sharply rising energy prices, heightened volatility in capital markets and, at times, pronounced declines in equity markets.
At the same time, trade uncertainty has become more prominent again. However, things have not come to a complete standstill; it is more that investor demand is increasingly concentrated on selected sectors and established companies that already had a critical mass, robust business models and a strong track record prior to the IPO.
On the whole, global IPO markets are proving resilient despite the challenging environment: although individual transactions have been postponed or faced pricing challenges, defense, aviation and infrastructure stocks in particular are benefiting from the geopolitical environment, with the result that in some cases we can even speak of an IPO boom in these areas.
Less breadth, more depth in the IPO market
What has already been indicated in periods of heightened volatility in previous years is now becoming even clearer: in an environment of increasing uncertainty, investors prefer issuers with strong earning power, clear market positioning and robust growth prospects. This is widening the gap between IPO-eligible companies and those with weaker profiles. For the coming months, this means fewer transactions overall, but at the same time some very large, attention-grabbing IPOs.
Further IPOs in the defense and infrastructure sectors are to be expected, particularly in Europe. The outlook for companies in the defense industry is bright thanks to the increased efforts of NATO states to increase their defense spending towards the target of 5% of gross domestic product, some of which will go to critical infrastructure.
Alongside Aerospace & Defense, AI remains a key driver of the IPO market with the IPOs expected from the United States. However, the focus is increasingly shifting away from mere visions towards concrete, scalable applications, especially in the areas of AI infrastructure, data centers, semiconductors and industrial applications.
Year-on-year comparison of international markets
- In China (including Hong Kong), there were 68 new issues (2025: 50), with a total value of USD 16.7 billion – a year-on-year increase of 181% and the largest of all relevant stock exchanges.
- In the United States, the number of deals (27; down 55%) declined, while issue volume, at USD 10.2 billion, was 13% higher than in the same period last year.
- In Europe, fewer companies went public than in the first quarter of 2025 (28; down 18%). Thanks to CSG’s mega-IPO, however, the placement volume increased significantly by 48% to USD 6.4 billion.
- In terms of sectors, Advanced Manufacturing (42 IPOs, USD 11.3 billion) and Technology (38 IPOs, USD 8.8 billion) dominated.
- In the rankings of the largest IPOs in the first quarter, CSG is followed by US energy infrastructure company Forgent Power Solutions with an issue volume of USD 1.7 billion and then Chinese meat producer Muyuan Foods with USD 1.4 billion.
Subdued IPO‑ activity in Switzerland at the start of the year
In Switzerland, the IPO‑market remained subdued in the first quarter of 2026. Against the backdrop of persistent geopolitical uncertainty, increased market volatility and a challenging financing environment, many companies were cautious and postponed their stock exchange plans. At the same time, well-prepared issuers with a clear capital market strategy and long-term financing needs remain open to evaluating the capital market – particularly with a view to a possible upturn in the market environment later in the year.
Commenting on the results of the current IPO Barometer, Tobias Meyer, Head of Transaction Accounting and IPO Services at EY Switzerland, said: “In Switzerland, too, we are currently observing a wait-and-see stance. Many companies are taking advantage of the current market environment to further develop their IPO‑readiness in a targeted manner and prepare strategic options instead of going on the market at short notice.”
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EY’s organization is represented in Switzerland by Ernst & Young Ltd, Basel, with 10 offices across Switzerland, and in Liechtenstein by Ernst & Young AG, Vaduz. In this publication, “EY” and “we” refer to Ernst & Young Ltd, Basel, a member firm of Ernst & Young Global Limited.