Global IPO Market Slumps Amid Trade Tensions, Rate Hikes

The worldwide number of initial public offerings has decreased substantially during 2025 because U.S. tariffs combined with market volatility and increasing interest rates have reduced investor interest in new listings.

The LSEG data shows that global IPO proceeds reached $44.3 billion during the first half of 2025 which represents a 9.3% decrease from the previous year and marks the lowest level since 2016. The U.S. IPO market experienced a 12% decrease to reach $12.3 billion while European IPOs declined by 64% to $5.8 billion. The Asia-Pacific region stood out as the only market segment that experienced a 28% increase in IPOs which reached $16.8 billion due to China and Japan.

The April tariffs imposed by President Donald Trump created global trade uncertainties which led to a decline in investor confidence. The ongoing negotiations and temporary truce have failed to eliminate the uncertainty that affects tech sector listings.

The market volatility creates extreme risk for unprofitable firms when they attempt to go public according to Isabelle Freidheim of Athena Capital. The market recovery becomes extremely difficult when companies experience initial performance issues.

The Chinese battery giant CATL achieved the year's largest funding success by raising $4.6 billion through its IPO while demonstrating regional market strength. The U.S. market shows increasing optimism because fintech firm Chime achieved a successful initial public offering. The market expects Klarna and Cerebras to initiate their market entry when volatility decreases because analysts predict a stronger second half.