Initial public offerings surged in the first half of 2025, despite significant market volatility and policy uncertainty, according to a recent EY report. The CBOE Volatility Index (VIX) fluctuated sharply between 14.8 and 52.3 during the period, five times the range seen in early 2024 amid concerns over U.S. trade policy and geopolitical tensions. EY stated, “Fueled by uncertain U.S. trade policy and ongoing geopolitical tensions in Eastern Europe and the Middle East, this heightened volatility is compelling companies to reimagine their exit strategies.” The firm noted that many firms are staying private longer or opting for listings with smaller float sizes. Despite the turbulence, equity markets recovered toward the end of Q2, and the VIX stabilized.
EY reported a 35% increase in IPO activity across the Americas, with U.S. IPOs rising 20% on average on their first day of trading. Offerings that raised at least $50 million in gross proceeds returned 40% by the end of Q2. “This suggests that IPO aspirants are proactively preparing and becoming increasingly agile, seizing market opportunities as they arise,” said Rachel Gerring, EY Americas IPO Leader. She added, “With this renewed momentum, we remain optimistic about the remainder of 2025, assuming broader economic indicators remain stable.”
