Footnote
1 CMR Bulletin, 31 March 2026, Market Health section, Closed IPOs chart
IPO Insights 1Q 2026
Perspectives on the quarter’s market trends
Taking a company public can boost its profile and provide much needed capital resources. But ensuring readiness for the capital markets requires a keen understanding of the current IPO landscape—significant exits; sectors on the rise; trends in deal prices, sizes, returns; and more.
IPO Insights delivers the latest information and analysis on IPO activity and performance. Prepared by professionals from the KPMG Capital Markets Readiness and KPMG Private practices, this quarterly report is designed to help private business leaders prepare their companies to join the capital markets.
IPO markets stumble out of the gate
It wasn’t the start to 2026 that investors had hoped for. First, IPO markets struggled in the face of a tech sell-off. Then there was a private credit crisis. In March, conflict in the Gulf brought activity to a standstill. IPO volumes sagged from 17 deals in February to just six in March1. Cancellations rapidly swelled to their highest level in more than two years.
Some larger deals made it over the line. The quarter saw six $500 million-plus deals – one of which raised just over $1.5 billion. Yet, overall, gross proceeds for the quarter fell more than 11 percent compared to the previous quarter, to $11.2 billion, while continued volatility weighed on performance, with just 10 of the quarter’s 35 IPOs generating positive returns for investors.
On the plus side, there are signs that private market business leaders and their investors expect the slowdown to be short-term – nearly twice as many companies announced their intention to conduct an IPO in the quarter versus those that cancelled – suggesting expectations of a market reopening in the next few quarters.
Highlights of 1Q’26
1
IPO volumes fell 17 percent quarter-over-quarter, with cumulative proceeds down more than 11 percent to $11.2 billion.
2
Six deals valued at more than $500 million came to market, led by an industrial manufacturing raise of $1.5 billion.
3
Overall performance declined through the quarter on the back of continued volatility, with industrial manufacturing delivering the strongest returns.
4
Private equity saw public market exits increase, bringing 16 of the quarter’s deals to market.
No. of IPOs(a)(b) and gross proceeds (US$B)
The below data includes 13 direct listings closed during 1Q24-1Q26; 4 direct listings were reported in 1Q26
(a) Includes traditional IPOs and direct listings that were closed in the given time frame;
(b) The data excludes SPAC IPOs;
A falling tide drops all ships
No sector was immune to the market uncertainty that surrounded the quarter with just 10 of the 35 IPOs generating positive returns for investors.
Industrial manufacturing performed best under the circumstances, leading the deal count with nine deals in total and raising more than $4 billion (a 67 percent increase over 4Q25). Industrials also brought three of the five biggest deals of the quarter, with one listing raising $1.5 billion. However, by the end of the quarter, average performance had sagged, delivering a -1.7 percent return to investors.
Financial services brought two large ($500 million plus) deals to the markets, raising a combined $1.7 billion of the sector’s $3.1 billion total. Yet while the two top listings generated positive returns by quarter’s end, the sector average dipped 21.7 percent overall.
Healthcare and life sciences also put in a strong showing – eight deals in total, $2.75 billion raised – but the sector’s listings fell 16 percent across the quarter on average. Other sectors faced a significantly more challenging quarter – new Energy and Resource listings fell 39.5 percent on the quarter on average and TMT dropped 41.7 percent.
When markets react to geopolitical uncertainty, they can often reopen just as quickly as they shut. Those private market leaders who are pushing back their IPO plans are using the time to really tighten their capital markets readiness and shape their story to the market. They want to be ready to pull the trigger as soon as the right moment arrives.
Shari Mager
Partner and US National Leader, Capital Markets Readiness, KPMG LLP
US traditional IPO performance in 1Q26 by sector
US IPO performance by sector - Average 1Q26 returns(a)
(a) IPO performance/return is the percentage change in the opening price of the stock on the first trading day and closing price of the stock on the last trading day of 1Q26 – 31st March 2026 (b) The data excludes HMH Holding Inc. IPO (ENRC sector) as it started trading on 1st April 2026
PE carries the market activity
Private equity-backed listings drove IPO market activity in the quarter with 16 deals brought to market, up from 10 in the previous quarter. However, overall PE exit activity inclusive of M&A declined over the quarter and many expect continuation funds to remain popular as sponsors rely on GP-led secondaries for liquidity rather than traditional exit routes and IPOs.
Exit activity also softened for venture capital-backed companies on the back of overall lower deal volume across the quarter. Many will be watching to see how certain VC-backed AI-based ventures impact market activity over the coming quarters with concerns that mega‑IPOs could crowd out smaller IPOs, thereby delaying a full market recovery until 2027 and adding pressure on VC liquidity.
US PE exit volume by type (Percentage share)
Percentage share of each type of PE exit in the total number of exits
(a) Sponsor acquisition occurs when a private equity firm sells an asset to another private equity firm or sells to a private equity-backed firm such as a PE firms portfolio company;
US VC exit volume by type (Percentage share)
Percentage share of each type of VC exit in the total number of exits
Future trends
How will conflict in the Gulf impact US IPO markets?
Disruption in global supply chains is adding cost pressures to key sectors such as fertilizers, chemicals, food products and logistics. With gas prices up across the US, consumer costs are also rising. At the same time, however, some sectors are seeing increased investor attention as a result – US energy and defense assets, for example.
For now, the response from investors has been cautious with many taking a wait-and-see approach – deal volumes sank in March while cancellations rose. The big question is how long the impacts of the disruption will last and how that will influence long-term consumer confidence and demand.
SPACs continue their rebound
For a while there, it seemed SPACs had fallen out of favor with investors. But SPACs are clearly back. Consider this: in the first quarter, 62 new SPACs were listed, compared to 35 traditional IPOs. SPACs raised $11.8 billion, just above the $11.2 billion raised via the traditional route. Twenty-seven new SPAC IPOs were announced in the quarter.
While the number of SPAC M&A deals fell in the first quarter – down nearly 35 percent quarter-over-quarter to just 15 acquisitions – there are signs that activity could pick up on the back of interest in hyper-growth areas such as robotics, AI, quantum and critical minerals. SPAC targets should remember, however, that the demands of being a public company are no less stringent when you go the SPAC route; market readiness will be key.
Outlook for 2Q26
While opportunities certainly exist for rapid (though likely short-lived) market reopenings, our view suggests that IPO markets will remain selective – rewarding those candidates that can demonstrate established operating scale, clear earnings visibility and credible post-IPO performance profiles. Expect to see investors flock towards large, high-quality offerings.
Clearly, IPO activity and investor appetite will hinge on market stability and a reduction in geopolitical uncertainty. So while we do not anticipate a broad-based reopening of US IPO markets before the end of the year, we also recognize there are opportunities for markets to reopen sooner on the back of sustained positive news over the summer.
How KPMG can help
Understanding the key trends and investor expectations is critical to preparing for an IPO. Investment narratives matter. They cut through the deluge of data and analysis and help companies sift real windows of opportunity from market noise. And the most compelling deal stories come from insights about a company’s unique mix of valuation drivers. Sector. Markets. Customers. Portfolio mix. Capital structure.
At KPMG, our professionals offer a range of services specifically designed to help privately owned companies—venture-backed or otherwise—navigate each stage of the IPO journey. We help entrepreneurial ventures simplify the complex challenges of going public, while helping ensure they meet their diverse regulatory, compliance, and reporting requirements.
Working with KPMG, you gain access to trusted advisers who share your entrepreneurial mindset. And we can help you understand and improve the factors that drive maximum deal value for your offering.
Meet the team
Shari Mager
Partner, U.S. National Leader, Capital Markets Readiness, KPMG US
Shari Mager
Partner, U.S. National Leader, Capital Markets Readiness, KPMG US