Why IPO markets are gaining momentum now

In the Americas, all eyes are on a few potentially historic IPOs

The first half of 2026 would already represent the second most active full year on record for US IPOs by proceeds. The gravitational pull of a small number of mega-IPOs is shaping the IPO calendar, drawing outsized investor attention and influencing when other companies in the pipeline choose to launch. For other IPO candidates, the question is whether their planned timeline will coincide with one of these giants — and how to avoid being crowded out if it does.

“Momentum is building for US IPOs, particularly as a number of large, sponsor-backed companies prepare to come to market,” says Rachel Gerring, EY Americas IPO Leader. “Investor sentiment in the near term is likely to be shaped by the outcome of several anticipated mega-IPOs with capital and attention expected to concentrate around these transactions. In this environment, issuers should remain flexible around timing to successfully access the market.”

Beyond the marquee names, the makeup of the IPO market has continued to evolve. The most recent class of IPOs includes several larger, more mature companies that have stayed private longer, using that time to build out their presence and infrastructure. Notably, 12 deals raised more than US$1 billion in 1H 2026 in the US, up from four in the same period last yea​r. AI remains a dominant driver, with the strongest momentum in semiconductors, power and data center infrastructure, and companies already translating AI demand into revenue. Demand is also evident across other sectors, including aerospace and defense, and biotech.

Alongside the well-functioning IPO market, special purpose acquisition companies (SPACs) are re-emerging as a credible alternative for certain issuers, supported by a dramatic increase in SPAC formation and an improving environment for capital-raising. With the high demand for a public listing, dual-track IPO or SPAC processes have become more prevalent in the current market, and companies are increasingly preparing for both routes in parallel to preserve flexibility around timing and execution.

In Greater China, deep liquidity and international capital are supporting solid IPO activity

Greater China’s story is one of depth. It remains among the world’s most active equity capital markets, with the A-share and Hong Kong markets playing complementary roles. The Chinese mainland draws principally on domestic investors, while Hong Kong attracts regional and international capital. This structure — deep local liquidity from Chinese mainland long-term funds such as mutual funds and insurers, and steady flows into Hong Kong — provides a buffer against the external shocks that have unsettled other regions. It also helps explain why Q2 IPO volumes have held up despite the impact of the ongoing conflict in the Middle East on the economy.

As Terence Ho, EY Greater China IPO Leader, notes, “Q2 IPOs were supported by strong participation from international investors, including sovereign wealth funds and leading asset managers, particularly from the Middle East. These investors play an active role in the local IPO market, including serving as cornerstone investors on several offerings. Their engagement reflects growing confidence in China’s hardware assets, as well as a more favorable outlook on regulatory developments and a stronger long-term investment outlook.”

The pipeline is being reshaped by hard technology. AI infrastructure, semiconductors, robotics, and advanced manufacturing increasingly define what comes to market, and the listing architecture has adapted to accommodate them. The STAR Market and Hong Kong’s Chapter 18C both offer routes for hard-tech companies that may not yet be profitable but can meet market capitalization thresholds. By contrast, more traditional sectors, including conventional manufacturing, real estate and traditional financials, continue to attract limited investor interest.

Two further dynamics are worth noting. Firstly, companies are increasingly using pre-IPO financings to bolster their balance sheets to bridge to a more attractive IPO window. This lets companies wait for the right timing rather than accept an unfavorable one. Secondly, regulatory reform, including the offshore filing regime, has added structural stability. This has given companies a clearer ability to choose among Chinese mainland, Hong Kong and US listing paths. For many IPO candidates, the gating factor is less about market sentiment than regulatory approval; once it’s secured, companies tend to move regardless of conditions, managing valuation expectations and planning follow-on raises rather than waiting indefinitely.

Strong pipelines are awaiting the right execution window in EMEIA

EMEIA presents strong pipelines and genuine access to capital, with several notable candidates in India that could come to market in the near term. The region’s IPO market has proven resilient, but investors seem to be highly selective. Equity stories linked to hot sector trends and growth have commanded investor attention. As a result, there has been concentrated activity in a narrow band of sectors — in the defense value chain, industrials, AI-related and critical infrastructure. Investor appetite is on cash-generative resilient business models, clear growth prospects and strong management.

Sentiment across the region is shaped by a confluence of macro factors. The conflict in the Middle East and the war in Ukraine weigh on the regional growth outlook, while higher energy prices have reintroduced the prospect of renewed inflation and, in turn, higher rates. Geopolitical uncertainties influence regional sentiments in EMEIA with higher uncertainty and short spikes of volatility. Addressing this, IPO readiness is paramount to create flexibility and transaction optionality for IPO-bound companies.

Despite the macro uncertainty, there are two structural trends that are helping to bolster IPO activity and shrink the deep European IPO backlog.

First, government spending programs — such as Germany’s substantial commitments to critical infrastructure and NATO’s push toward a 5% of GDP defense spending target — are expected to underpin infrastructure, energy, industrial and defense-related listings.

With both the IPO and SPAC paths accelerating, the question facing issuers is how and when to approach the market. The EY team sat down with Mark Schwartz, EY Americas IPO and SPAC Advisory Leader, to discuss how companies and their stakeholders should think about approaching the new issue market.

What are you seeing in the market today that suggests IPO activity is accelerating?

“We’re seeing clear signs that the IPO market is open and accommodating and could set IPO issuance records this year. Broader markets, particularly in the US, are largely looking past the recent geopolitical tensions. Meanwhile, IPO filings and pricings have increased following a brief pause at the start of the conflict in the Middle East. Importantly, recent IPOs have generally been pricing and trading well in the aftermarket, and the pace of IPO readiness activity among EY clients has been very robust for several quarters.”

How should companies determine whether a traditional IPO or a SPAC merger is the right path for them?

“Regardless of whether a company chooses an IPO or merges with a SPAC, the result is a publicly traded company. However, IPO and SPAC deals differ in many significant ways, such as when deal terms come into focus, transaction timelines and potentially the depth of the resulting shareholder base. Historically, more established companies have favored IPOs, while emerging companies more often pursued SPACs, although these lines are increasingly blurred. Importantly, companies can explore both paths on the way to a listing, if that makes sense for them.”

What has led to the renewed interest in SPACs?

“SPACs are re-entering the conversation for certain companies as the market has been replenished with newer vehicles that have ample time to transact. In addition, some of the headwinds that weighed on the last cycle, including high redemptions and a constrained private investment in public equity (PIPE) market, are beginning to ease. We certainly haven’t returned to the 2020–2021 SPAC boom, but for the right issuer, a SPAC merger can offer an attractive route to the public markets.”

Five priorities stand out for companies preparing to access public markets in today’s environment:

1. Do what you do best. Focus on the near-term, actionable growth drivers. Investors are prioritizing visible, credible execution. IPO candidates should anchor their equity story in clear near-term revenue and earnings drivers.

2. Take the time to get your business and financial models right. Together, they will be the foundations for success as a public company. Robust business and financial models underpin investor confidence and will need to hold up through IPO scrutiny and into life as a public company.

3. Approach funding decisions as if an IPO isn’t in the cards. IPO markets can be fickle, and IPO windows can be fleeting. Capital planning should maintain flexibility and not depend on a specific IPO window, given how quickly market conditions can shift and windows can close.

4. Get to know your longer-term shareholder targets. Going public today is more about relationship-building than ever. Developing an early understanding of target shareholders and beginning that engagement pre-IPO can support stronger alignment, book quality and aftermarket stability.

5. Be proactive about public company preparation. IPO readiness can open the door to a successful listing, while not being ready can have far-reaching consequences. Readiness enables execution when windows open; lack of preparation can delay or derail outcomes.