IPO market slumps in 2026 despite $40.6B in proceeds

Global IPOs plummet 23% in Q1 2026—but mega-listings drive record proceeds

Six-Year Low: Iran War Halts Many IPOs, Says EYThe world's largest first-quarter IPO came from Czech ammunition maker CSG.

After a promising start to 2026, renewed geopolitical tensions surrounding the Iran war and soaring global energy prices triggered a sharp decline in initial public offerings (IPOs). The number of market debuts fell by 23 percent year-over-year to just 230—the lowest level in six years—according to a report by EY.

The last time fewer companies went public was in the second quarter of 2020, during the height of the COVID-19 pandemic, when only 195 IPOs were recorded, the firm's IPO Barometer data shows.

Fewer Listings, But Higher Proceeds

Though far fewer companies dared to go public, total IPO proceeds surged by 36 percent to $40.6 billion. The number of large-scale listings—those raising over $500 million—climbed from 14 to 22, while smaller offerings declined sharply: IPOs valued under $100 million dropped from 237 to 146.

Defense Sector Dominates IPO Landscape

The world's largest IPO of the quarter took place in Europe: Czech ammunition manufacturer CSG raised $4.5 billion in its debut on Amsterdam's Euronext exchange.

In Germany, defense-related companies also drove IPO activity, buoyed by strong investor demand. Of the three German firms that went public in the first quarter, two—Vincorion (€345 million) and Gabler (€134 million)—operate in the defense sector.

Additionally, Austrian copper specialist ASTA Energy listed on the Frankfurt Stock Exchange, raising €198 million. Meanwhile, Hamburg-based Arenit Industrie SE completed a private placement on Sweden's Nasdaq First North Premier Growth Market.

'IPO Markets Under Clear Pressure'

Martina Geisler, Partner and Head of IPO at EY Austria, noted: "The latest escalation in the Middle East has put significant pressure on global IPO markets, pushing listings to a six-year low. We're seeing sharply rising energy prices, heightened volatility in capital markets, and notable share price declines. At the same time, trade policy uncertainties are coming to the fore once again."

Still, Geisler does not anticipate a complete standstill. "Rather, investors are focusing sharply on specific sectors—particularly companies that already have substantial scale, stable business models, and a proven track record before going public."

She emphasized the resilience of global IPO markets: "While some transactions have been delayed or struggled with pricing, defense, aerospace, and infrastructure firms are benefiting strongly from the geopolitical climate. In these sectors, we're almost seeing an IPO boom."

Vienna Stock Exchange: Record Trading and International Growth

Market volatility drove the highest quarterly equity turnover on the Vienna Stock Exchange in 15 years. The exchange also expanded its global market segment for international securities, adding over 30 companies from the STOXX Europe 600 index, as well as recent listings like Austria's ASTA Energy Solutions. The segment now includes around 900 international securities from 28 countries.

Outlook: Defense and Infrastructure IPOs on the Rise

With NATO members ramping up defense spending toward the 5 percent of GDP target—a significant portion of which will go to critical infrastructure—Geisler expects further IPOs in Europe's defense and infrastructure sectors. "The current environment creates highly favorable conditions for companies in these industries," she said.

Alongside aerospace and defense, artificial intelligence—particularly with the anticipated major U.S. IPOs—remains a key market driver. However, the focus is increasingly shifting away from visionary future scenarios toward concrete, scalable AI applications, especially in infrastructure, data centers, semiconductors, and industrial use.

International Markets: Year-over-Year Comparison

In China (including Hong Kong), there were 68 new listings (compared to 50 in the prior year), raising a total of $16.7 billion—a 181% surge over the same period last year and the largest increase among all major stock exchanges.

The U.S. market saw a decline in the number of deals (27, down 55%), though the total issuance volume reached $10.2 billion, a 13% increase from the previous year.

In Europe, fewer companies went public than in the first quarter of 2025 (28, down 18%). However, thanks to the mega-IPO of CSG, the total proceeds rose sharply—by 48% to $6.4 billion.

By sector, advanced manufacturing led with 42 IPOs ($11.3 billion), followed by technology with 38 listings ($8.8 billion).

Among the largest IPOs of the first quarter, CSG was followed by U.S. energy infrastructure firm Forgent Power Solutions, which raised $1.7 billion, and Chinese meat producer Muyuan Foods, with $1.4 billion in proceeds.