European IPO proceeds quadruple as markets look through geopolitical woes

European companies raised four times as much through IPOs in the second quarter of 2026 as they did a year earlier, as equity markets recovered from the turmoil caused by the Middle East war.

The aggregate amount offered in IPOs by European businesses reached $7.69 billion in the quarter from $1.87 billion in the same period of 2025, according to S&P Global Market Intelligence data. The number of listings rose about 61% year over year to 37.

On a quarterly basis, IPO proceeds rose 13.1%, and the number of IPOs increased 19.4%.

US and Nordic exchanges hosted some of the largest IPOs in the quarter, with most listings in the industrials, consumer, and technology, media and telecommunications sectors.

Equity markets remained near all-time highs, indicating that the disruption caused by the Middle East war had a limited impact on expectations for equities, Michael Field, chief equity strategist at Morningstar, said in an interview. Despite the war and higher oil prices, European equities rose by more than 11% in the second quarter, Field said.

German power systems manufacturer Innio NV, Italian technology group Bending Spoons SpA and UK-based metal components manufacturer DPC Holdings PLC had the three largest IPOs in the second quarter. All three listings were on US exchanges, while the largest Europe-based IPO was that of Danish fish feed producer BioMar Group A/S on Nasdaq Copenhagen.

As market volatility eased, issuance expanded across a broader range of sectors in the second quarter, reflecting robust investor demand "across both mega-cap listings and smaller transactions," Kat Kravtsov, director for UK capital markets at PwC, wrote in the consultancy firm's latest IPO report.

While geopolitical and macroeconomic uncertainty shape the near-term narrative, the underlying picture for European markets has become increasingly constructive, Kravtsov wrote.

Narrow windows

Still, heightened uncertainty has made investors more selective, and IPO windows have narrowed, Field said. In this environment, investor sentiment toward a sector can make or break a listing, and IPO candidates must be ready to seize the first good opportunity to float, Field said.

"Visibility is no longer a thing. It's just a question of ... whether you can make things work in that short period of time before the next absolute mess happens to markets," Field said.

Investors have become more focused on short-term trends rather than long-term potential, and if they don't think a sector will perform well in the next three to six months, "they just don't want anything to do with it," Field said.

The second quarter demonstrated that "capital is available, but investors are focusing on large, well-prepared companies with compelling investment cases and clear growth prospects," said Martin Steinbach, IPO leader for Europe, the Middle East, India and Africa at EY.

"Companies seeking to capitalize on today's relatively narrow IPO windows must be thoroughly prepared while maintaining the discipline and a contingency plan to wait if volatility or geopolitical risks intensify in the short term," Steinbach said via email.

– Explore European equity markets and IPO statistics. – Check the latest stock price performance of Innio, Bending Spoons, DPC Holdings, BioMar and CSG.

Sector trends

Some companies are already responding to this by becoming more opportunistic in their approach and working around market shifts, Field said. For example, the timeline of Space Exploration Technologies Corp.'s (SpaceX's) IPO was relatively short despite it being the biggest stock market debut in history, he said.

"The lesson learned for companies globally, regardless of sector, is that you can really mess up an IPO ... by publicizing it too far in advance," Field said.

This was the case with defense contractor KNDS NV, which recently had to pull its stock market debut due to a drop in sector valuations, Field said. While it seems "a great time to list a defense company," dynamics have shifted lately, he added. According to Field, valuations rose significantly in 2025 amid government spending plans to support the sector, and now price-to-earnings ratios are more expensive.

There are also questions about whether governments will follow through with all their defense spending plans, Field noted. On June 24, Germany canceled its largest frigate program, which resulted in an over 14% drop in the shares of the lead contractor, Rheinmetall AG.

KNDS said July 1 it will resume its planned dual listing on the Paris and Frankfurt, Germany, stock exchanges "when capital markets conditions are supportive." The company reportedly could not persuade investors to support a valuation of over €12 billion, which is well below the €18 billion to €20 billion valuation discussed earlier in 2026, according to the Financial Times.

Defense accounted for a large share of first-quarter IPO proceeds, with both the largest and third-largest listings in the period coming from the sector, according to Market Intelligence data. Euronext Amsterdam remained the leading stock exchange by proceeds in the first half of 2026 due to the first-quarter IPO of Czech ammunition manufacturer CSG NV

Demand for sectors including defense, AI and critical infrastructure remains strong, EY's Steinbach said. The IPO pipeline is "well populated," but successful listings will depend on sector trends and "the strength of the equity story," Steinbach said.

Europe's share of second-quarter IPO proceeds in the global total fell to 5% from 15.2% in the previous three months, due in part to SpaceX's $86.25 billion listing, according to Market Intelligence.