After years of uncertainty, international equity capital markets (ECM) are finally coming to life once more. As monetary policy is coming into stabilisation and investor sentiment is slowly returning cautiously, IPOs and SPACs are re-emerging as viable funding channels, particularly in high-growth and emerging markets. Is it, however, a flash-in-the-pan spike or the beginning of a longer-term uptrend?
Here, we explore the drivers of the revival in ECM activity, look at how investor confidence is trending, and name the top industries and territories leading the charge in 2025.
The global ECM universe weathered a storm over the past three years, with inflationary pressures, rising interest rates, and geopolitical tensions cooling primary issuance volumes to multi-year lows. As of 2025, though, there is newfound hope fuelled by stabilising central bank policies, robust corporate fundamentals, and ample dry powder from institutional investors. Where firms used to avoid going public, we now have a growing pipeline of IPO-ready companies, especially in technology, energy transition, and financial services.
Initial Public Offerings are coming back into favour strongly, especially in Asia, the Middle East, and Latin America. Institutional investors starved for growth and diversification are once more committing to primary issuances with increased confidence.
Valuation Reset: Less lofty price regimes are induced by lower public market valuations.
Investor Readiness: Asset managers and pension funds are rebalancing portfolios proactively for the coming rate cuts.
Market Maturity: Emerging market exchanges are quickly upgrading to provide greater liquidity and transparency.
From Southeast Asian fintech firms to Gulf Cooperation Council energy companies, the IPO window is opening across many geographies.
Special Purpose Acquisition Companies (SPACs) were once the toast of speeded-up listings, but with deal underperformance and regulatory strains, the romance cooled. Now, a leaner, cleaner SPAC model is on the rise.
Better Alignment: Sponsors are focusing more on quality targets and clearer valuation measures.
Stricter Regulation: New US and UK regimes are intended to restore investor trust.
Geographic Expansion: SPAC activity is expanding outside of North America, and into the Middle East and Asia.
SPACs will no longer reach their 2021 peaks, but they're claiming a more stable, sustainable role as part of an ECM diversified strategy.
Investor interest is coalescing around structurally supported sectors. The following themes are driving the ECM narrative in 2025:
Climate-Tech and Sustainability: From green hydrogen to battery storage, clean energy businesses are attracting public market capital at scale.
Digital Infrastructure: Those that power the global data economy—like fibre, 5G, and data centres—are leading candidates for SPAC mergers and IPOs.
Financial Technology: Fintechs with regional growth plans and integrated finance business models are enjoying new investor interest, particularly in MENA and Latin America.
A series of market and macro indicators point to a growing willingness on the part of institutional investors to come back to public markets:
Liquidity Cushions: With increasing cash deployments during recent years, funds are ready to invest.
Regulatory Clarity: Strengthened listing regimes and governance practices are allowing investor due diligence.
Global Rotation: There is a strong rotation into emerging market equities, where demographic growth and policy changes are defining long-term opportunity.
|
Dimension |
IPOs |
SPACs |
|
Regulatory Focus |
High |
Medium (but rising) |
|
Speed to Trade |
Moderate |
Faster |
|
Investor Sentiment |
Upward |
Stabilising |
|
Sector Fit |
Broad |
Niche (Tech, Infra) |
|
Disclosure |
Strong |
Improving |
While the sentiment is positive, ECM participants must watch out for some headwinds:
Market Volatility: Global macro shocks—like spikes in oil prices or political tensions—can readily scare off investors.
Execution Risk: Not all companies are IPO material; weak narratives and befuddled growth pathways can blow up listings.
SPAC Redemption Pressure: Redemptions remain strong in the SPAC world, testing deal economics.
Yet for firms with good stories and solid fundamentals, capital markets are back to normal.
At Global Banking and Markets, we are the worldwide leader in emerging markets-focused financing events globally. We facilitate complex capital markets in one place, at one time—facilitating casual networking, critical discussions, and introductions that accelerate deal velocity. Whether you're evaluating ECM strategies, sourcing institutional relationships, or seeking new investment horizons, our events allow you to forge the connections that move markets. We don't offer advisory or solution services—except that we do make the marketplace available where business counterparties and partners connect, share, and get deals done.
The resurgence of IPOs and the re-emergence of SPACs represent a shift for global equity markets. As institutional investors become optimistic again and companies establish themselves for growth, 2025 could be the beginning of a robust cycle of issuance. From frontier deals to global centres of capital, the future of raising equity capital is one of flexibility, transparency, and access to the right person at the right time.
We at Global Banking and Markets are honoured to be leading this change, bringing smart capital to real opportunity.