IPO Market 2025: Why Europe Falls Behind the U.S.
Nikolay Stoykov, Managing Partner at Alaric Securities, on “In Development”, Bloomberg TV Bulgaria
The IPO market in 2025 is showing a striking divergence between regions. In the U.S. and Hong Kong, initial public offerings are enjoying a revival. In Europe, however, activity has slowed to its weakest level in decades.
From January through August, just six companies listed shares in the UK, raising $208 million—the lowest in thirty years. Across continental Europe, IPO proceeds are down nearly 50% compared to 2024. By contrast, U.S. fundraising has climbed 38% to $40 billion, while Hong Kong IPOs have more than doubled after several sluggish years.
According to Nikolay Stoykov, Managing Partner at Alaric Securities, this gap reflects not only market cycles but also structural differences in regulation and investment culture.
Why the U.S. IPO Market Leads
Several factors explain the U.S. advantage in the IPO market 2025:
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Flexibility: American companies can list through Special Purpose Vehicles (SPVs), allowing faster reactions to favorable conditions.
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Culture: U.S. investors are more comfortable putting money into stocks, while Europeans often prefer bank deposits.
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Regulation: European rules are heavier, offering protection but slowing down the path to public markets.
“Real investment culture is relatively stronger in the United States,” Stoykov said. “In Europe, investors are cautious, which limits IPO activity.”
Europe’s Real Estate Obsession
Another barrier lies in where Europeans put their money. In countries like Bulgaria, investors overwhelmingly favor real estate over capital markets.
“It’s hard to imagine Bulgarian real estate outpacing Monaco,” Stoykov warned. “At some point yields will decline, and capital markets must play a greater role.”
Redirecting funds away from property and into stocks, ETFs, and other market products will be essential for Europe to revive its position in the global IPO landscape.
The Path Forward for Europe
Stoykov outlined three key reforms for European capital markets:
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Complete the single capital market with unified, simpler rules.
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Liberalize access to investment products, including U.S. ETFs, for retail investors.
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Develop long-term strategies that encourage households to diversify away from property.
Without such reforms, Europe will continue to lag behind the U.S. IPO market and Asia.
Key takeaway
The IPO market 2025 highlights a widening gap between regions. The U.S. and Hong Kong are attracting companies and capital, while Europe risks losing ground due to regulation, habits, and structural barriers.
As Stoykov concluded, Europe doesn’t lack strong companies—it lacks the conditions that turn them into public market leaders.
Watch the full interview in the video below.
Source: BloombergTV Bulgaria