Global IPOs Grow 17% to $26.2 Billion in Q1, Despite Economic Strains

Despite geopolitical tensions, rising inflation risk, trade wars, and a cooling economic outlook, which caused the postponement of some initial public offerings to later in the year or into early 2026, global IPO activity remained strong.

According to data presented by Stocklytics.com, the total value of global IPO deals jumped by 17% year-over-year and hit $26.2 billion in Q1.

Japan Tops the Charts with a 450% IPO Explosion

The last few years have been quite challenging for companies looking to transition to public ownership. The 70% plunge in 2022, the worst year for IPO deals since 2016, was followed by a 30% drop in 2023, and the total value of deals continued falling in 2024 despite the growing confidence among both issuers and investors. Although the market saw stronger performance in the second half of the year, particularly in the fourth quarter, the total value of deals dropped by 10% to $121.2 billion, according to the EY Global IPO Trends 2024 report.

However, the deal activity showed signs of recovery in the first three months of 2025, with 291 IPOs raising $29.3 billion, marking a 17% increase in total deal value compared to the same period last year.  Still, there were significant differences between the regions. According to the Wall Street Journal data, the U.S. IPO deal activity hit $8.1 billion in Q1, marking a massive 58% increase compared to a year ago. Furthermore, IPO filings rose to 69 in Q1 2025, marking a nearly 28% increase from the previous year.

The Asian market saw a substantial 24% growth in IPO deals, with their total value reaching $8.7 billion in Q1, while the Middle East and Africa followed with $1.6 billion worth of deals and a 33% increase. However, none of these markets is even close to the IPO surge seen in Japan. Statistics show Japanese IPOs skyrocketed from $578 million in Q1 2024 to $3.2 billion in Q1 2025, marking a massive 450% increase year-over-year.

AI and High-Tech IPOs Lead the Market in 2025

The Wall Street Journal data also showed that artificial intelligence has become a game-changer in the IPO landscape. Businesses across industries use AI to run more efficiently and successfully boost their chances of going public. The technology, healthcare, and financial sectors talked about AI the most in their official filings, with many recent IPOs making AI a key part of their story.

Statistics show high-tech IPOs made one-fifth of all deals in Q1, with $5.7 billion in value, 5% more than in the same quarter last year. The materials sector saw the second-highest value of deals at $4.6 billion, or five times the figure reported in Q1 2024. Industrials and healthcare sectors saw their deal activity plunge by 7% and 44%, reaching total deal values of $3.8 billion and $3.6 billion, respectively.