After several years marked by macroeconomic and geopolitical challenges, 2025 proved to be a more stable year for the global initial public offering (IPO) market, according to a new report released on Monday by research and consultancy firm EY, formerly known as Ernst & Young.
A total of 1,293 IPO transactions were completed in 2025, raising $171.8 billion globally, the consultancy said in its "EY Global IPO Trends 2025" report.
Compared with 2024, while the number of global transactions remained broadly flat, total proceeds rose by a notable 39%.
"This resurgence signals renewed investor confidence and a shift toward higher-quality offerings," it added.
According to the report, AI-focused companies came to the fore in global markets in 2025, while valuation concerns continued to shape investor demand.
"While overall performance was positive, gains were uneven across regions and sectors, and concerns about valuations, especially in parts of the AI domain, became more prominent as the year progressed," the report said.
Major indices such as the S&P 500 and Nasdaq benefited from strong earnings and cash-flow generation by leading technology companies, as well as positive developments on inflation.
Volatility was "episodic," the report suggested, attributing it to shifts in interest-rate expectations, ongoing geopolitical tensions, trade and tariff risks, and debates over AI valuations. In this environment, investors gravitated toward companies with strong balance sheets, sustainable cash flows and a proven ability to navigate periods of macroeconomic uncertainty, the report further said.
EMEIA region leads in deal count
From a regional perspective, the EMEIA region (Europe, the Middle East, India and Africa), which includes Türkiye, led global IPO activity in terms of deal count, accounting for 42% of the total, the report said.
While the region recorded a decline in proceeds compared with 2024, it outperformed both the Americas and Asia-Pacific in terms of the number of IPOs.
Across Europe, the number of transactions fell by 20%, from 131 to 105, while proceeds declined by 10% to $17.3 billion.
In the Middle East and North Africa (MENA) region, Saudi Arabia continued to lead in both deal count and proceeds. Although the Americas lagged behind EMEIA and Asia-Pacific in both the number of transactions and proceeds, the U.S. remained one of the most active global IPO hubs.
On a country basis, India rose to the top in terms of deal count, followed by the U.S. and China. In terms of IPO proceeds, the U.S. ranked first, followed by China and India.
Globally, the industrial sector accounted for 22% of IPO proceeds in 2025, while the technology, media and telecommunications (TMT) sector captured 21%, making them the leading sectors by value. However, sectoral distribution varied by region.
In the U.S., TMT accounted for nearly 40% of proceeds, largely driven by companies supporting AI infrastructure. In contrast, Europe saw a more diversified sector mix, including industrials, financial services, real estate and hospitality, and consumer sectors.
In Asia-Pacific, large deals involving companies developing AI systems in robotics, mobility and industrial applications stood out.
AI’s transformative potential, valuation debate
While the transformative impact of artificial intelligence is clear, current valuations have reignited debates over whether the market is entering a "bubble" phase.
This debate has become central to market sentiment, significantly influencing the share-price performance of AI companies. In the U.S., large technology companies accounted for nearly half of the S&P 500’s earnings in 2025, while a handful of mega-cap AI companies drove roughly one-third of the index’s gains.
This concentration underscores AI’s potential but also increases market sensitivity, as even small valuation changes in just a few companies can affect broad asset classes.
Cautious optimism prevails for global IPO markets looking ahead to 2026. Companies that prioritize agility and preparedness are likely to be well-positioned for success. Momentum in AI and technology investments is meanwhile expected to continue, potentially driving greater capital flows toward companies with scalable business models, strong fundamentals and clear commercialization road maps.
Turkish IPO market
Metin Canoğulları, country managing partner at EY Türkiye, evlauted the global and Turkish IPO market, suggesting that "2025 was a year in which global IPO markets regained balance after a prolonged period of uncertainty."
"From Türkiye’s perspective, a total of 18 IPOs were completed in 2025, raising TL 45 billion in proceeds," he asserted.
"Compared with more than 30 IPOs in 2024, both the number of transactions and proceeds declined in 2025. Looking ahead to 2026, cautious optimism prevails globally. Strong domestic demand, a solid banking system and investments in digitalization represent significant potential for capital markets," he added.
"These factors send encouraging signals for the period ahead. We expect IPO interest to continue to rise, particularly in the technology, financial services, energy and consumer sectors. In Türkiye, if macroeconomic stability strengthens further, progress is made in the fight against inflation and investor confidence increases, the IPO market could gain broader momentum," he suggested.