IPO numbers dropped 12% globally in the first half of 2023, despite robust stock markets and record-breaking emissions.

The first half of 2023 saw a notable decline in global IPO activity, with only 483 companies going public—a 12% drop compared to the same period last year, according to consultancy EY. Geopolitical tensions, particularly the ongoing war involving the USA, Israel, and Iran, have dampened investor confidence and disrupted global trade routes, including the Strait of Hormuz. This has impacted industries reliant on oil, gas, and fertilizers.

Regionally, IPO trends varied significantly. China, including Hong Kong, experienced a 39% surge in IPOs, while the United States saw a sharp 33% decline. Despite fewer IPOs, the U.S. achieved a 200% increase in emissions volume, largely driven by SpaceX’s historic $86 billion IPO in June, making Elon Musk the world’s first trillionaire. Meanwhile, stock markets remained resilient, with indices like Japan’s Nikkei gaining over 40% and the Nasdaq 100 rising 20%, fueled by AI-related optimism. The German DAX showed modest growth, up just 2% since January.