The Initial Public Offering (IPO) activity in Africa came far behind United States, India, Greater China in the first half (H1) of the year. The United States and Greater China claimed around 60 percent of global IPO proceeds, with a similar share by deal number when India is included.
Three markets take the lead…
While Africa recorded just two IPOs worth $100million, three markets — the US, India and Greater China — each launched over 100 IPOs in H1 2025, according to EY Global IPO Trends Q2 2025. The global IPO market recorded 539 listings, raising $61.4 billion in H1 2025, a 17percent increase in proceeds year-over-year (YOY).
The US led with 109 IPOs worth $17.1billion, marking its strongest first-half performance since the 2021 peak. India’s 108 IPOs in H1 were valued at $4.6billion, while Greater China recorded 104 IPOs valued at $20.7billion.
This is compared to IPO activities in Africa, Europe, Latin America, Middle East, Japan, South Korea, Oceania and ASEAN. In the first-half (H1) of 2025 there were 50 IPOs in Europe valued at $5.9billion, Japan had 27 IPO worth $3.7billion, while in the same period, Middle East recorded 36 IPOs worth $5.1billion.
What drives investor’s appetite…
Investors are placing greater emphasis on a company’s ability to differentiate through innovation, build resilient and trusted brands, and execute clearly defined growth strategies.
These elements are seen not only as indicators of future performance but also as signals of adaptability in a rapidly evolving market landscape.
Read also: BGFI to raise $200 million from first ever IPO in Central African history
Industrial sector takes the lead in IPO issuance…
Industrials led all sectors in IPO issuance, capital raised and growth performance. The technology sector experienced a slight volume decline, but saw total capital raised increase 19 percent compared to the same period last year. Software companies are predominantly listing in the US and Japan, with the US’s volumes more than doubling compared to H1 2024. This indicates continued investor appetite for digital platforms and software-as-a-service (SaaS) models.
The consumer sector secured a top three position in global IPO volume in 2025, driven primarily by robust retail sub-sector activity. The real estate, hospitality and construction sector demonstrated parallel strength, benefiting from sustained infrastructure spending.
The health and life sciences sector held steady in deal count compared to the prior year, but smaller average transaction sizes drove total proceeds down by approximately one-fourth. The energy sector performance tells a tale of contrasts amid heightened volatility.
The sector’s exposure to geopolitical instability, supply chain disruptions, and the ongoing energy transition created persistent commodity price swings throughout H1 2025.
The insurance sector is seeing renewed IPO interest, particularly in the US, where heightened uncertainty has boosted demand for risk-mitigation products, appealing to investors seeking stability amid volatility.
Cautiously optimistic scenario…
At the mid-point of 2025, sentiment in the global IPO market reflects a cautiously optimistic tone, according to the EY Global IPO Pulse Survey conducted with institutional investors in June.
There are signs of renewed momentum in the US and India, early indications of recovery in Europe and continued strong activity across parts of Asia-Pacific and the Middle East — particularly in Hong Kong and the Chinese mainland.
In London, take-private activity continued to outpace IPOs…
The report shows that in London, for example, take-private activity continued to outpace IPOs in the early half of 2025, with double-digit de-listings and single-digit IPOs. “Companies are actively navigating between public and private capital strategies, often with the backing of PE sponsors”.
“In a more positive scenario, a global IPO market rebound could materialize in the second half of 2025 or early 2026, given more cooperative trade frameworks, accommodative monetary policy, controlled inflation and geopolitical de-escalation. These developments would help stabilise business activity and economic growth, improve equity valuations and capital market momentum, and reduce market volatility — conditions that typically foster renewed investor confidence.
September-October window a critical testing ground …
“Clearer regulatory and policy signals, a firm macroeconomic footing and potent sector-specific catalysts are also pivotal to igniting IPO momentum within relevant sectors. While broader structural reforms and innovation play an important role, sustained recovery fundamentally hinges on geopolitical stability and unambiguous monetary policy,” the report stated.
“The upcoming September-October window could be a critical testing ground. Several high-profile listings are scheduled during this period, which market participants view as a litmus test for broader investor appetite and the potential for a more robust recovery heading into 2026,” it stated.
The positive outlook could weaken under a second scenario if high or unevenly easing interest rates, entrenched inflation and ongoing geopolitical tensions continue to dampen investor sentiment.
