IPO market on course to hit four-year high |
U.S. IPOs rebounded strongly through the third quarter, raising $15.9bn - nearly double the previous quarter - and marking the highest quarterly total since the fourth quarter of 2021, according to EY. IPO proceeds for the first nine months of 2025 rose 21% year-on-year to $33bn, with volumes up 49% to 180 offerings. The surge reflects investor resilience amid persistent geopolitical risk and optimism around AI, fintech, defence, and healthcare themes. Private equity exits have also surged, with PE-backed IPO proceeds up 68% globally. However, EY also warned of obstacles ahead. “Long-term [interest] rates have faced upward pressure due to idiosyncratic dynamics and rising concerns around fiscal sustainability,” the Big Four firm said. “Elevated bond yields increase discount rates, making IPO valuations less attractive and forcing issuers to deliver clear profitability paths, not just narratives.” Additionally, it said “political instability, such as the U.S. government shutdown, and concerns over Federal Reserve independence raise risk premiums.”