Key Takeaways

  • EY said on Thursday that U.S. initial public offering (IPO) activity significantly heated up in the third quarter of 2025, with total proceeds reaching $15.9 billion, nearly doubling from the second quarter, driven mainly by a stock market rebound and investors' improved adaptation to global turmoil risks.
  • "Investors increasingly view geopolitical risks as part of the 'new normal'—not a one-off shock, but a persistent backdrop to market dynamics," George Chan, EY's global IPO leader, said in a statement.
  • According to the EY report, both the number and total proceeds of U.S. IPOs in the last quarter hit their highest levels since the fourth quarter of 2021. In the first nine months of this year, IPO proceeds rose to $33 billion, up 21% year-over-year;the total number of IPOs jumped to 180, an increase of 49%.

In-Depth Analysis

EY noted that several favorable factors are expected to support the continuation of global IPO market growth into early 2026, including enhanced market stability, improved investor confidence, corporate earnings resilience, and monetary easing policies in countries such as the United States.

EY predicts that in the coming months, the IPO market will also benefit from investors' strong interest in companies in artificial intelligence and emerging technology sectors such as finance, defense, and healthcare.

George Chan said: "Monetary policy easing and 'AI-driven technological disruption remain decisive forces shaping market sentiment and capital flows.'"

EY said the IPO pipeline is expanding among companies in real estate, industrial production, consumer goods, and energy sectors. The technology, media and entertainment, and telecommunications industries lead in IPO numbers, particularly in the U.S. and Chinese markets.

Private equity (PE) firms are also boosting the IPO market. EY cited a second-quarter survey indicating that two-thirds of general partners (GPs) expect to increase their exit activity.

EY data shows that in the first nine months of 2025, the number of PE-backed IPOs globally more than doubled year-over-year, with proceeds surging 68%. In the U.S., the number of PE-backed IPO exits reached its highest level since 2021.

Of course, chief financial officers (CFOs) considering an IPO still face significant headwinds.

EY said concerns over stubborn inflation and uncertainty about global economic growth prospects cast a shadow over the IPO outlook.

EY noted: "Due to special dynamics and rising concerns about fiscal sustainability, long-term (interest rates) face upward pressure. Rising bond yields push up discount rates, making IPO valuations less attractive and forcing issuers to provide a clear path to profitability, not just a story."

EY also said: "Political instability (such as a U.S. government shutdown) and concerns about the Federal Reserve's independence have also pushed up risk premiums."