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The industrial sector leads globally in initial public offering (IPO) issuance during the first half of 2025, according to a report by EY.
This strong performance was supported by the mobility subsector and robust IPO activity in countries like India, Greater China, and South Korea. The report stated that retail and mobility IPO issuance reached record highs in terms of global share. Geopolitical developments and national strategic priorities have played an important role in shaping the IPO landscape, creating new opportunities within specific sectors. It stated "Industrials led all sectors in IPO issuance, capital raised, and growth performance. This strength was largely driven by the Mobility subsector and robust IPO activity from India". Industrials were ahead of all sectors in terms of IPO issuance, total capital raised, and growth performance. Much of this strength came from the mobility segment, which includes sectors like electric vehicles and transport technologies. A significant contribution also came from India, Greater China, and South Korea, where IPO activity remained strong. Indian Initial Public Offering (IPO) activity in the first half of 2025 recorded 108 deals raising USD 4.6 billion, demonstrating market resilience despite a 30 per cent decline in transaction volume compared with the previous period. The report also highlighted that India's industrial IPO contributed around USD 1.7 billion with 38 IPOs launched in the first half of 2025. Geopolitical tensions and increasing risks in global supply chains have pushed countries to focus more on reshoring and friend-shoring strategies. This has led to a boost in investments in domestic manufacturing and advanced technologies. At the same time, government-led infrastructure projects and rising defense budgets have further supported innovation in the industrial sector. India alone accounted for nearly one-third of all industrial IPOs globally in the first half of 2025. However, the report highlighted that despite the high volume, the returns remained muted. This, according to EY, reflects both the market's depth and investors' cautious approach. Greater China played a major role as well, with proceeds from the region making up over 60 per cent of global IPO share. This surge was led by large listings from electric vehicle (EV) battery makers and auto parts suppliers. The strong domestic demand and continuous restructuring of supply chains are seen as the key reasons behind this performance. In comparison, the technology sector witnessed a slight decline in IPO volume, but the total capital raised went up by 19 per cent compared to the same period last year. Software companies mainly chose to list in the US and Japan. In fact, IPO volumes in the US more than doubled compared to H1 2024. This reflects the ongoing investor interest in digital platforms and Software-as-a-Service (SaaS) businesses. (ANI)
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