Record-Breaking European IPO Financing at the Start of 2026, Signs of Market Recovery Emerge

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Europe’s IPO market has experienced its strongest annual start ever, injecting confidence into new listings activity after a long period of stagnation.

According to the Financial Times on Monday, the amount raised from just five IPO deals in Europe this month has already reached a quarter of the total for all of 2025, setting the fastest annual start since 1995. Investment bankers and investors are growing increasingly optimistic about the market’s recovery.

Defense manufacturer Czechoslovak Group (CSG) completed a €3.8 billion deal on Friday, with shares soaring 31% on its first day of trading and a market value approaching €33 billion. This Amsterdam-listed company is Europe’s largest IPO this month, successfully passing a key test of market confidence.

A number of large companies in Europe are preparing to go public, with IPO activity increasing significantly. Tom Swerling, global head of equity products at Deutsche Bank, said: "This might be the best IPO market in Europe in more than a decade."

This momentum echoes trends in the US and Hong Kong, where major AI companies are preparing to list, and Hong Kong is benefiting from a wave of Chinese AI listings. For investment banks, a market rebound will bring significant fee income and could reverse the IPO stagnation seen after the pandemic.

Defense Sector Leads the Listing Boom

CSG’s successful listing has added momentum for other defense companies planning IPOs, including Franco-German tank maker KNDS and German group Vincorion. Bankers note that industrials, logistics, and technology are expected to be key growth sectors for European IPOs this year.

Luca Erpici, head of equity capital markets for Europe, the Middle East and Africa at Jefferies, said Friday’s IPO "substantially increased confidence in the European IPO market." He noted: "Investor interest is also supported by improvements in the quality and scale of potential IPO candidates."

Last year's strong rebound in European stocks has lifted valuations and increased the chances for companies to attain attractive pricing in public markets. CSG has become one of Europe’s largest IPOs of the past decade, second only to Porsche’s €9.082 billion deal in 2022.

Despite the strong start, bankers remain cautious about the market outlook. Past expectations for a revival in listings have repeatedly fallen short, including the setback after Trump’s tariff announcement in April last year.

In 2025, Europe completed 105 IPOs, raising €16.1 billion, a slight decrease from 2024 and just a fifth of the 2021 peak. The region accounts for only a tenth of global IPO funding, while activity in markets like the US has rebounded.

Private Equity-Backed Firms Poised to List

Advisers are watching a crop of long-prepared, private equity-backed IPOs. The owners of these businesses hope to reduce their holdings and return cash to investors.

Major private equity-backed firms that may debut in Europe this year include: Visma, a software company owned by Hg with an estimated €19 billion valuation aiming for a London listing; German car trading platform Mobile.de valued at €10 billion; and German industrial group TK Elevators, valued at $25 billion.

In October last year, Swedish security firm Verisure, backed by Hellman & Friedman, completed a €3.2 billion IPO, providing further support for these deals’ prospects.

Andrew Briscoe, head of EMEA equity capital markets syndicate at Bank of America, said: "Many sponsors have held these assets for a long time and are under internal pressure to monetize, especially when equity markets are at historical highs."

Clara Comellini, head of block trading and wealth management for EMEA equity capital markets at UBS, noted: "Marketing activity is extremely intense, and the deal pipeline is much fuller compared to last year."

London Market Seeks a Breakthrough

Visma’s listing will serve as a barometer for the London market, which is looking to rebound after a lack of major deals.

Other potential London IPO candidates include bookseller Waterstones, road rescue services provider RAC, and the retail arm and European telecoms operations of CK Hutchison from Hong Kong.

Whether these deals succeed will test the sustainability and breadth of the European IPO market recovery.

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