Companies have raised the most capital through share sales in the first quarter since 2021, with equity capital markets issuance jumping 40% to $211 billion, according to LSEG data. IPO proceeds contributed $44 billion of this total, a 47% increase year-on-year, despite a slight dip in the number of listings. These figures underscore investor resilience amidst ongoing geopolitical tensions and market volatility.
Deal values have been significantly boosted by substantial transactions in sectors perceived as more stable, such as the $4.5 billion IPO of Czech defence group CSG. The technology sector also drove issuance, particularly for AI infrastructure. Industry experts suggest investor appetite remains strong for large defence and AI-related listings, which have demonstrated resilience compared to software stocks amid global uncertainties.
Looking ahead, the United States is expected to be a focal point for IPO activity. SpaceX is anticipated to potentially raise over $75 billion at a valuation reaching $1.75 trillion. Additionally, AI companies like OpenAI and Anthropic are reportedly considering listings later in the year, with expectations of raising tens of billions of dollars. OpenAI, for instance, is a leading artificial intelligence research and deployment company, developing advanced AI models.
Private equity firms are also contributing to the robust IPO pipeline by seeking to list larger assets. Despite some postponed deals, the overall sentiment remains positive, contingent on subsiding market volatility and geopolitical stability. Experts such as Phyllis Wang from Goldman Sachs, note the market’s capacity to absorb substantial transactions, even amidst elevated volatility, while John Kolz from Barclays highlights the remarkable resilience displayed by investors in the face of global turbulence.
