This article was published on South Korea’s largest foreign investment information platform, Hankyung Global Market.
Last year, the size of initial public offerings (IPOs) in the global information technology (IT) sector decreased by 59% compared to the previous year. There are expectations that this year’s global IPO market will be more active than last year.
On the 20th, Samil PwC, based on PwC’s ‘Global IPO Performance and 2025 Outlook’ report, stated that more than 700 unicorns and private equity (PEF) backed companies in the U.S. are preparing for listing, which is expected to lead the recovery of the global IPO market. The report suggests that macroeconomic stability and regulatory easing related to capital issuance will drive the recovery of the U.S. market.
Samil PwC has been leading the listing of Korean companies in the U.S. since 2003 and operates a dedicated cross-border IPO team. They handle IPO tasks for regions like the U.S., Singapore, Hong Kong, and Europe, and support Korean IPOs of foreign companies. Over 100 personnel, including partners from the U.S. and the U.K. with overseas work experience, support individual foreign listings.
According to the report, last year, the total fundraising amount through global IPOs was $105.6 billion, a 9% decrease from the previous year. The decline was mainly due to the contraction of IPO activities in China and Hong Kong. In contrast, U.S. IPO funding increased by 57%, and European funding rose by 105% compared to the previous year.
By industry, the largest IPO sector last year was consumer discretionary with $18.3 billion, surpassing the IT sector, which was the largest until 2023. Industrials ($17.8 billion), finance ($15 billion), and consumer staples ($13.9 billion) followed.
IT sector IPOs decreased by 59% compared to the previous year, with the amount dropping from $25.9 billion in 2023 to $10.6 billion last year. According to PwC, this is because some tech companies can secure funds from strategic and financial investors while remaining unlisted. The report indicates that the advancement of artificial intelligence (AI) has increased the value of both listed and unlisted tech companies, showcasing that unlisted tech companies can raise sufficient capital without going through an IPO.
The report forecasts that this year’s global IPO market will gain momentum, with the U.S. leading the market recovery. Daniel Fertig, a partner at Samil PwC, analyzed that the U.S. market environment is becoming more favorable due to continuous interest rate cuts, policy predictability, and investor confidence, with more companies entering the market viewing AI as a long-term growth driver. He also noted that Europe’s regulatory simplification efforts to support IPO and capital issuance would have a positive impact on the market.
Kim Gi-rok, leader of Samil PwC’s Global IPO team, advised that “geopolitical risks still pose a downside factor, causing the IPO window to open and close rapidly due to market volatility and macroeconomic impacts, and companies planning for IPO should thoroughly prepare with sufficient time.”