2025 U.S. New Issuance Half-Year Recap

Following 2024, which was the most active year for equity new issuance since 2021, the first half of 2025 has demonstrated remarkable resilience in sustaining this momentum despite challenging market conditions.

Market Overview

Following 2024, which was the most active year for equity new issuance since 2021, the first half of 2025 has demonstrated remarkable resilience in sustaining this momentum despite challenging market conditions. As geopolitical tensions and complex global trade negotiations unsettled the markets, the new issuance market remained robust, with a total of 499 deals (168 IPOs, 292 FOs, and 39 CVTs) pricing U.S. Exchange that raised $135.5 billion in proceeds. This marks a 7% increase in deal volume compared to the first half of the previous year, which saw 466 deals generating $116.2 billion.

The year began with 217 deals in Q1, reflecting a 13% decline from Q4 2024 as market sentiment began to wane towards the end of the quarter. The announcement of increased tariffs by the U.S. led to a slow start in Q2, where April saw only 53 deals—tying with August 2024 for the slowest month of new issuance since October 2023. However, the market rebounded strongly in May and June, with 111 and 118 deals respectively, bringing the total for Q2 to 282 deals, the highest in a quarter since Q4 2021. 

Data includes deals that priced on a U.S. Exchange and excludes closed-end funds and PIPE deals. Source: Equity Deals Database

IPOs Continue to Rise

Building on its strong performance in 2024, the IPO market experienced a significant surge in activity, with 168 IPOs (including SPACs) entering the market and raising $28.9 billion in proceeds. This marks a substantial increase from the 94 IPOs recorded in the first half of 2024 and the 75 in 2023. Notably, this is the highest number of IPOs seen in the first two quarters of a year since at least 2001, excluding the exceptional 579 IPOs in 2021.

The rise is SPAC Issuance is a notable contributor to the overall uptick in IPO activity, with 66 SPACs pricing year-to-date, the most since 69 SPACs priced in the first half of 2022. Excluding SPACs, the IPO market remained robust, with 102 issuers pricing for $16.5 billion in proceeds, matching the volume seen in 2018, aside from the record 219 deals in 2021.

The largest IPO of the first half was from Venture Global, Inc., which raised $1.8 billion from the energy sector in January. Additionally, three other issuers surpassed the $1 billion mark: CoreWeave, Inc. raised $1.6 billion, SailPoint, Inc. raised $1.4 billion, and Circle Internet Group, Inc. raised $1.2 billion, all from the technology sector. Continuing the positive momentum set last year, the industrials sector led with 24 IPOs, outpacing the healthcare sector's 18 IPOs.

In terms of pricing performance, IPOs averaged a first-day return of 15.3%, exceeding the 10.5% average increase observed in the first half of 2024. Waton Financial, LTD recorded the strongest first-day performance, soaring nearly 400% from its IPO price of $4 per share. The technology sector has also excelled, with IPOs currently trading over 140% above their IPO prices on average. Circle Internet Group, Inc. leads this trend, having jumped 168% on its first day and currently trading at 485% above its IPO price of $31 per share. CoreWeave, Inc. follows closely, trading around 300% above its IPO price of $40 per share. Conversely, IPOs from the real estate sector have experienced the lowest first-day performances, averaging a decline of 14% and currently trading 22% below their IPO prices.

Follow-On Offerings Regress but Remain Strong

Follow-on issuance continued to be the most prevalent type of offering during the first half of the year, although difficult market conditions led to a slight regression compared to previous months and quarters. In Q1, 127 follow-on offerings priced for $39.1 billion in proceeds, which was below the 169 deals recorded in Q4 2024 and the 177 in Q1 2024. The market volatility in April significantly impacted activity, resulting in only 20 deals pricing—the lowest total since May 2019, when just 19 deals were completed. However, following a swift rebound, volumes stabilized and returned to more typical levels, culminating in 165 deals for Q2 and a total of 292 year-to-date. This total falls short of the prior year’s 323 follow-ons but just above the 289 in 2023.

Despite the year-over-year decrease in volume, total proceeds raised reached $81.5 billion, well above the $65.6 billion raised in 2024 and the $49.5 billion in 2023. The largest offering during the first half came from Charles Schwab Corp., which raised $13.1 billion from the financial sector—marking the largest follow-on from this sector since BlackRock, Inc. raised $13.3 billion in May 2020. Additionally, Brown & Brown, Inc. issued a $4.4 billion follow-on in early June, making it the second-largest offering of the year.

Overall, 19 follow-ons raised over $1 billion in proceeds, with the consumer goods sector leading this category, as seven issuers exceeded the $1 billion mark. Ferrari topped this sector, raising $3.1 billion, while Keurig Dr Pepper, Inc. completed two separate offerings of $2.4 billion and $2.3 billion, respectively. The top three sectors—healthcare, technology, and industrials—accounted for 65% of follow-on offerings, continuing the trend established in 2024, with these sectors pricing 117, 41, and 31 deals, respectively.