How the global IPO market proved its resilience in Q3

The global IPO market is broadening. Despite persisting headwinds, the pipeline of near-term IPO candidates has grown in size and quality.

In brief

• IPO markets remain resilient in the face of geopolitical complexities and macroeconomic challenges.
• While the mega-IPOs look to select their windows, broader sector participation from technology, biotech and consumer issuers has buoyed market activity.
• Solid post-IPO share performance and a receptive investor environment have led to increased sponsor-backed issuance.

The global IPO market entered Q3 2026 on the back of an active first half and provided evidence that the current issuance cycle could have further room to expand. The defining story of Q3 was the market’s ability to sustain issuance levels through conditions that, in prior cycles, could have narrowed the IPO window.

Against a backdrop of persistent geopolitical uncertainty, elevated energy prices and rising central bank interest rates, new issuance markets have generally remained open across geographies and across a broadening range of sectors. Though concerns around AI safety and the rapid pace of investment grew by Q3’s close, AI-adjacent issuers including chips, data centers and robotics anchored deal flow, while biotech maintained its strong pace and selective consumer and retail issuance tested investor appetite with mixed results. Furthermore, while M&A generally remains the preferred exit route for sponsors, the IPO market’s extended momentum — underpinned by constructive aftermarket performance — has encouraged a growing number of sponsors to pursue public exits.

“The solid market foundation that was established earlier this year has proven resilient through Q3,” says Karim Anani, EY Global IPO Leader; EY Global and Americas Transactions Accounting Advisory Leader. “Broader sector participation, increased sponsor-backed issuance and a strong volume of quality transactions, particularly in the Americas and Asia-Pacific, reflect investors’ positive inclination toward the IPO asset class. Europe too has seen pockets of local market strength, even as geopolitical complexities, increased energy prices and rising interest rates create real headwinds.”

Across the globe, institutional and retail demand for quality new issues has proved stronger than the current headwinds, with equity investors looking to capture the momentum of AI and AI-infrastructure trends compounded by the incremental alpha generated by recent positive aftermarket performance.

Key themes

• Global IPO activity has been supported by a growing number of companies needing access to substantial growth capital, especially those in AI and AI-adjacent sectors.
• The current IPO cycle highlights the strength of investor support for new issues with a concentration of oversubscribed order books, solid pricing outcomes and accommodating aftermarket conditions.
• Geographic breadth is reinforcing the resilience narrative from multiple directions — India led global markets by deal count, Mainland A-share and Hong Kong cross-listings deepened Chinese cross-border capital access in Asia, and the Americas posted outsized proceeds driven by a number of larger IPOs.
• Many potential issuers are continuing to utilize dual-track processes where it makes sense to preserve available options.

Regional overviews

Americas: Earnings strength and broader sector participation sustained momentum as the macro backdrop grew more complex

The S&P 500 reported its seventh consecutive quarter of double-digit earnings growth, with over 85% of constituents exceeding earnings expectations, strengthening the backdrop for the IPO market. Volatility remained in check during the quarter, allowing new issue activity to broaden across technology, consumer and other sectors. The biotech sector was particularly active in Q3, spanning a broad range of therapeutic needs and clinical stages, with particularly strong aftermarket performance. However, inflation remained stubbornly above Fed targets, leading to the first interest rate increase in the US since 2023. Issuers are also cautious about November's midterm elections in the US, with a number of issuers electing to accelerate their timing to avoid crosswinds.

“The bar remains high for prospective issuers in the Americas IPO market,” says Rachel Gerring, EY Americas IPO Leader. “A compelling financial narrative and valuation discipline are critical to earning investor confidence.”

“Public company readiness efforts have remained active, even as the IPO market backdrop has grown more complex and a number of deals were withdrawn toward the end of the quarter,” says Mark Schwartz, EY Americas FAAS IPO and SPAC Advisory Leader. “Potential issuers are digesting the interest rate and election scenarios as they are preparing for windows of opportunity to launch offerings.”

Notable developments

• The capital-intensive buildout of AI and AI-adjacent infrastructure continues to buttress IPO activity despite AI safety and spending concerns.
• Cross-border listings accounted for the region’s two largest new issues in Q3, highlighting the desire of international issuers to access the depth of capital available in the region.
• Special purpose acquisition companies (SPACs) continue to form at a steady pace, maintaining the vehicle’s place as an alternative route to the public market for some companies, particularly where timing flexibility and deal structure matter more than the benefits of a traditional IPO.