EY Hanyoung: "Global IPO Market Active in Q3... Solid Growth in Korea"

Global accounting and consulting firm EY Hanyoung announced on October 20 that the global initial public offering (IPO) market showed a clear recovery trend in the third quarter of this year (July to September). The firm analyzed that record highs in stock indices across major countries, easing monetary policies, and solid corporate earnings supported this upward trend.

According to the "EY Global IPO Trends Report for the Third Quarter of 2025" released on the same day, a total of 370 global IPOs were completed in the third quarter, up 19% from the same period last year. The total amount raised surged by 89% year-on-year to $48.2 billion (approximately 69 trillion won). On a cumulative basis from the first to the third quarter of this year, a total of 914 IPOs raised $110.1 billion, representing increases of 5% and 41% respectively compared to the previous year, continuing the recovery momentum.

By region, the United States led the recovery. The U.S. IPO market recorded its most active quarterly performance since the fourth quarter of 2021. Favorable market conditions, high offering prices, and strong post-listing share performance drove this upward trend. India also showed strong growth based on robust domestic demand. The number of Indian IPOs in the third quarter was three times higher than in the second quarter, and the amount raised was nearly four times greater. A total of 146 IPOs were completed in the third quarter alone, marking an all-time quarterly high. China and the Middle East maintained stability, while Europe showed signs of gradual recovery due to regulatory reforms and macroeconomic improvements.

In South Korea, solid growth continued as investment demand focused on large-scale IPOs and the technology and industrial sectors. During the third quarter, a total of 18 IPOs were completed, raising approximately $1 billion. On a cumulative basis from the first to the third quarter, the number of IPOs increased by 17% year-on-year, and the amount raised rose by 18% to $2.5 billion. By sector, industrials led in the number of deals, while technology drove the amount raised. The listed companies were mainly technology-driven firms integrating innovations in hardware and software, such as advanced manufacturing, semiconductor solutions, automation, and artificial intelligence (AI)-based software platforms.

In particular, the KOSPI index recorded one of the highest returns among major global stock markets this year, positively impacting the domestic IPO market. The cumulative IPO return on the KOSPI from the first to the third quarter was 43.9%, ranking fourth among global exchanges, while the KOSPI index return reached 44.7%, ranking first globally.

Park Jungik, Head of the Audit Division Market Headquarters and IPO Leader at EY Hanyoung, said, "Recently, more Korean startups are attempting overseas listings. There are also moves by overseas subsidiaries of major Korean conglomerates to list locally or, conversely, to seek listings on the domestic stock market. These are strategic moves aimed at attracting global capital and enhancing corporate value simultaneously."

He added, "To prepare for strengthened market reviews, domestic companies must build sustainable business models and solid fundamentals, while maintaining a dual-track strategy that combines IPOs and mergers and acquisitions (M&A)."

Private equity (PE) funds are also increasingly using IPOs as a major exit strategy, moving away from a focus on M&A or secondary share sales. In the January-September period this year, the number of IPOs backed by PE funding more than doubled compared to the same period last year. This trend was particularly pronounced in the United States, China, and Northern Europe. Additionally, sectors that quickly adapted to AI and digital transformation continued to show robust market responses and share price performance after listing. PE funds are using IPOs to build market trust and are placing greater emphasis on sustained corporate value growth rather than short-term gains.

Park Jungik, IPO Leader, stated, "Easing interest rates, stable earnings, and recovering IPO returns are supporting investor sentiment and driving the recovery of the global IPO market. However, tariff disputes and geopolitical uncertainties remain as risk factors, so it is important to read macroeconomic trends and develop the capability to turn AI-driven industry changes into growth opportunities. A resilient business model and a sustainable growth strategy are also essential to withstand market volatility," he added.

This content was produced with the assistance of AI translation services.