Dive Brief:

• U.S. initial public offerings surged during the third quarter, generating $15.9 billion in proceeds or nearly double the Q2 total as stock markets rebounded and investors grew more accustomed to the risk of global turmoil, EY said Thursday.
• “Investors increasingly view geopolitical risk as part of the ‘new normal,’ no longer a singular shock but a persistent backdrop to market dynamics,” George Chan, EY global IPO leader, said in a statement.
• The totals for both IPO volume and proceeds last quarter hit the highest levels in the U.S. since Q4 2021, EY said in a report. During the first nine months of this year, IPO proceeds rose to $33 billion, 21% more than during the same period last year. The total number of offerings soared to 180 for a 49% gain, according to EY.

Dive Insight:

Several tailwinds will likely propel global IPO market growth into early 2026, including greater market stability, improved investor confidence, resilient corporate earnings and monetary easing in the U.S. and other countries, EY said.

The IPO market in coming months will also gain strength from an investor appetite for companies focused on artificial intelligence and new technology involving finance, defense and healthcare, EY predicted.

Monetary policy accommodation and “AI-driven technological disruption remain decisive forces shaping sentiment and capital flows,” Chan said.

IPO pipelines are expanding for companies focused on real estate, industrial production, consumer goods and energy, EY said. Technology, media and entertainment, and telecommunications lead in generating IPO volumes, especially in the U.S. and China.

Private equity firms are also stoking the IPO market, EY said, citing a Q2 survey revealing that two out of three general partners expect to step up exit activity.

During the first nine months of 2025, the number of IPOs worldwide backed by private equity firms more than doubled, with proceeds rocketing 68%, EY said. In the U.S. the number of PE-backed IPO exits hit the highest level since 2021.

To be sure, CFOs considering IPOs face stiff headwinds.

Concerns over stubborn inflation and uncertain prospects for global economic growth cloud the IPO outlook, EY said.

“Long-term [interest] rates have faced upward pressure due to idiosyncratic dynamics and rising concerns around fiscal sustainability,” EY said. “Elevated bond yields increase discount rates, making IPO valuations less attractive and forcing issuers to deliver clear profitability paths, not just narratives.”

Also, “political instability, such as the U.S. government shutdown, and concerns over Federal Reserve independence raise risk premiums,” EY said.