Global equity IPO volumes have fallen to their lowest level in nine years, dropping 9.3% year-on-year to $44.3 billion as of June 17, according to LSEG data.
The decline in initial public offerings comes amid heightened business uncertainty stemming from U.S. tariffs, elevated market volatility, and higher interest rates that have increased funding costs and made listings less attractive for companies seeking to go public.
The IPO slowdown has affected regions differently. U.S. IPO volumes decreased 12% to $12.3 billion, while Europe experienced a much steeper 64% decline to $5.8 billion. In contrast, the Asia-Pacific region bucked the trend with IPO volumes rising 28% to $16.8 billion so far this year.
Business uncertainty intensified in April when President Donald Trump announced tariffs, including a 10% blanket levy plus targeted duties on U.S. trading partners. Even though Trump later paused these measures and entered into negotiations on trade and tariffs, companies worldwide remain uncertain about future demand and investment decisions.
The higher interest rate environment has also contributed to the IPO slowdown by making it more expensive for companies to raise capital through public offerings.