As the European IPO market enters 2025, investors are watching with renewed optimism. After a turbulent few years marked by inflation, interest rate hikes, and market volatility, this year is shaping up to be a pivotal moment. With a growing pipeline of IPO candidates and improving economic conditions, is now the right time to invest in European public offerings?
Let’s explore what’s driving this IPO resurgence, the key companies to watch, and how retail investors can strategically navigate the opportunities ahead.
📈 European IPO Market Outlook for 2025
Following a dramatic slowdown in 2022, the European IPO market is finally on a steady path to recovery. By the end of 2024, proceeds from IPOs in the EMEA region reached approximately $30 billion, a 14% increase from the previous year. While still trailing the U.S., where IPO proceeds soared past $41 billion, Europe is showing clear signs of gaining momentum.
Key Drivers of Recovery:
- Lower Interest Rates: Easing monetary policy by the European Central Bank and Bank of England has made capital markets more attractive.
- Improved Market Confidence: Successful listings like Ferrari Group’s $818 million IPO in Amsterdam have encouraged investor participation.
- Sector Diversification: Listings now span across tech, consumer, and industrial sectors, reflecting a broadening market appeal.
Despite these gains, investor caution persists. As Bank of America’s Andrew Briscoe notes, “the market is still far from being open to everyone.” Nonetheless, 2025 is viewed as the “bridge year” to normalized IPO activity expected in 2026–2027.
🚀 Top European IPO Candidates to Watch in 2025
A number of high-profile European companies are preparing to go public this year, particularly in the technology, consumer, and industrial sectors. Here are some standout contenders:
🔹 1. Bolt (Estonia)
Sector: Mobility Tech
Valuation: Estimated in the billions
With €2 billion in revenue in 2024 and a 37% YoY growth from 2023, Bolt is quietly prepping for an IPO. While not in a rush, the ride-hailing and delivery giant is positioning itself as one of Europe’s tech darlings.
🔹 2. 1KOMMA5° (Germany)
Sector: Clean Energy Tech
Funding: €150 million pre-IPO
Backed by heavyweight investors like CalSTRS and G2 Venture Partners, this Berlin-based startup focuses on energy transition solutions—an ESG-friendly favorite for impact investors.
🔹 3. BrewDog (UK)
Sector: Consumer Goods
Expected Valuation: £1.8–2 billion
Despite losses of £59.2 million in 2023, BrewDog’s global reach across 15 countries and £355 million in revenue make it a strong IPO candidate in the consumer space.
These companies reflect the increasing diversity and resilience in Europe’s IPO pipeline—tech unicorns, sustainability champions, and legacy brands alike.
💰 Valuation Trends and IPO Pricing in 2025
Closing the Valuation Gap
A recurring challenge in recent years has been the valuation disconnect between company expectations and investor willingness to pay. In 2025, optimism is growing that this gap is narrowing:
- 27% of market professionals expect it to “substantially tighten”
- 41% foresee it “slightly tightening”
Rather than aiming for sky-high valuations, many IPOs are expected to launch with modest pricing, aiming for strong aftermarket performance—building long-term investor trust over quick capital grabs.
🔒 IPO vs. Private Capital: The Strategic Trade-Off
European companies are still weighing the benefits of public listing against staying private. Giants like Stripe and Klarna have chosen to delay IPOs, leveraging private equity to:
- Offer early investor liquidity
- Avoid public scrutiny
- Time their IPOs for better market conditions
However, public markets remain a crucial avenue for companies seeking large-scale growth capital and increased brand visibility. As valuations in private markets normalize, IPO interest is expected to rise.
📊 How Retail Investors Can Tap Into European IPOs
🔑 Access Strategies:
- Brokerage IPO Access: Some online platforms now offer retail allocations.
- Secondary Market Buying: Jump in after IPOs go live on exchanges.
- IPO ETFs & Funds: Get diversified exposure with funds focused on new listings.
📝 Pro Tip: Study IPO prospectuses carefully and evaluate companies based on fundamentals, growth potential, and post-IPO strategies.
🧠 Sector-Wise IPO Investing Tips for 2025
Here’s how different sectors are positioned for IPO action:
| Sector | Outlook & Opportunities |
|---|---|
| Technology | High-growth potential, but higher volatility (e.g., Bolt, Klarna) |
| Clean Energy | Strong ESG tailwinds and government incentives (e.g., 1KOMMA5°) |
| Consumer Brands | Recognizable names with predictable revenue (e.g., BrewDog) |
| Fintech | Digital transformation in finance is a long-term megatrend |
🎯 Diversify across sectors and countries to manage IPO volatility.
🌐 Macroeconomic & Regulatory Trends to Watch
European IPO activity in 2025 is highly sensitive to macroeconomic and political developments:
🔍 Key Influencing Factors:
- ECB and BoE Rate Decisions
- Inflation Stabilization
- Corporate Earnings Momentum
- Trade Tariffs and Geopolitical Risks
On the regulatory side, expect continued focus on:
- ESG disclosures
- Governance readiness
- Simplified listing requirements across EU markets
Some firms are even exploring dual listings on U.S. exchanges like Nasdaq to tap into deeper capital pools.
🧭 Final Thoughts: Is 2025 the Year to Invest in European IPOs?
2025 is shaping up to be a defining year for European IPOs. With improving market conditions, a robust pipeline, and narrowing valuation gaps, investors have compelling reasons to start paying closer attention.
✅ Opportunity: Enter promising companies early during their growth phase
⚠️ Caution: Market volatility and selective investor behavior still prevail
As we approach 2026–2027, the fully recovered IPO market many investors have been waiting for could finally materialize.