American investors often focus exclusively on US markets, but 2025 marked a dramatic resurgence in international initial public offerings (IPOs) that demands attention. Looking at offerings that raised $100 million or more, the global IPO market raised about $128 billion across more than 250 deals in 2025, representing a 37% increase in proceeds compared to 2024.
The International IPO Renaissance of 2025
While the US continued to top the leaderboard, international markets saw an IPO renaissance, driven by Hong Kong, India, Japan, and others that collectively captured about two-thirds of global IPO proceeds.
Hong Kong alone raised $31.6 billion from 63 companies in 2025, reclaiming the #1 position for non-US IPO fundraising for the first time since 2022. This represents a staggering 315% increase from 2024's $7.6 billion and puts Hong Kong well ahead of the next most active exchanges in India ($17.5 billion) and Japan ($6.5 billion).
For investors, this global dispersion creates unprecedented opportunity. International IPOs can provide access to companies in emerging, fast-growing markets that are dominating hot spaces like electric vehicles, semiconductors, and biotech. These companies can provide geographic diversification, offering exposure to demographic and economic trends unavailable through domestic investments alone.
For American investors willing to look beyond US borders, international IPOs may represent a compelling opportunity in global markets—providing diversification, growth exposure, and access to innovative companies reshaping industries worldwide.
The Top IPO Destinations in International Markets: Where Global Capital Flows
Hong Kong: The Undisputed 2025 Champion
Hong Kong's extraordinary 2025 performance—raising $31.6 billion from 63 IPOs—represents more than statistical achievement. It signals Hong Kong's re-emergence as Asia's premier international financial hub.
Outside of the US, the Hong Kong Stock Exchange (HKEX) is one of the most liquid and transparent markets in the world. The exchange hosted three of the world's 10 largest IPOs in 2025, led by the $5.3 billion listing from EV battery giant Contemporary Amperex Technology's (CATL).
Regulatory reforms catalyzed this success. The HKEX launched the Technology Enterprises Channel (TECH) in May 2025, providing streamlined guidance for specialist technology and biotech companies. The exchange implemented new rules requiring 40% of IPO shares be allocated to bookbuilding tranches, improving price discovery. Minimum spread reductions lowered transaction costs and enabled more efficient pricing.
India: The Volume Leader
India has emerged as a global IPO leader in recent years, hosting 42 IPOs in 2025 in a demonstration of market depth, retail investor enthusiasm, and the growing maturity of India's capital markets.
India prioritizes IT, digital infrastructure, and fintech sectors where the country maintains global competitive advantages. Strong domestic retail investor participation provides steady demand for IPOs across market cycles. Regulatory frameworks have matured significantly, with faster approval processes and stronger investor protections. However, India's exchanges occasionally experience intense volatility.
Tokyo Stock Exchange: Japan's Resurgence
Japan ranked third among non-US IPO markets in 2025, driven by a mix of businesses ranging from semiconductor plays to banking to consumer goods.
Japan's corporate governance reforms, initiated in 2023-2024, are bearing fruit. Requirements for companies to improve capital efficiency, increase shareholder returns, and enhance board independence have made Japanese stocks more attractive to international investors. The government's push for companies trading below book value to implement improvement plans is creating opportunities.
Other Opportunities
Beyond the top three markets, some other countries in the Asia Pacific region provide compelling opportunities. Singapore has maintained its position as a key financial hub. Indonesia is a newly industrialized country and has grown its IPO presence in recent years, benefiting from rapid growth in its emerging market.
In the Middle East, Saudi Arabia and the United Arab Emirates have emerged as significant IPO venues, boosted by the dynamics of their high-income developing economies.
Despite headwinds from inflation and geopolitical tensions, European IPO markets experienced selective recovery in 2025. London saw a late rush of new listings in 2025, driving annual proceeds to a post-2021 high. Germany's exchanges benefit from Europe's largest economy and strong industrial base. Italy implemented capital markets reforms in 2025 to enhance competitiveness.
Investing in New Stocks Internationally: Requirements and Access
For US Individual Investors: Pathways to International Markets
1. International Brokerage Accounts
US investors can access international stocks through brokers offering global trading capabilities. These include Interactive Brokers, Fidelity International Trading, and Charles Schwab Global Investing Services, among others.
Advantages:
- Direct access to foreign-listed companies shortly after IPO
- Broader universe of stocks compared to ADR availability
- Potential for better price alignment with local market
- Ability to access markets where ADRs are unavailable
Limitations:
- Currency conversion costs and FX risk
- More complex tax reporting and potential withholding taxes
- Higher friction (approvals, permissions, platform complexity)
- Compliance with both US and foreign reporting requirements
2. American Depositary Receipts (ADRs)
Many international companies list as ADRs on US exchanges, providing easier access:
- Sponsored ADRs: Company works with depositary bank; provides financial reporting meeting US standards
- Unsponsored ADRs: Created without company involvement; may have limited information available
Advantages:
- Trade during US market hours
- Settle in US dollars (no FX conversion required)
- Accessible through standard brokerage accounts
- Familiar regulatory and reporting environment
Limitations:
- Not all international companies offer ADRs
- ADRs often lag IPO timing or may not exist at all
- Depositary fees (typically small)
- May trade at a premium or discount to underlying shares
3. International ETFs and Mutual Funds
The simplest approach for most investors involves funds providing international exposure:
- Single-country ETFs: MSCI China ETF, iShares MSCI Japan ETF, etc.
- Regional ETFs: Emerging Markets ETFs, EAFE (Europe, Australasia, Far East) ETFs
- Sector-specific International ETFs: International technology, healthcare, or financial services funds
Advantages:
- Professional management
- Instant diversification
- No need for individual stock selection
- Simplified tax reporting compared to direct ownership
Limitations:
- Limited exposure to newly public companies (index inclusion lag)
- Less control over individual holdings
- Management fees and expenses
- Performance diluted by broader market exposure
The Renaissance International IPO ETF: Accessing New Stocks in Global Markets
For investors specifically seeking exposure to international IPOs, the Renaissance International IPO ETF (Ticker: IPOS) may offer a compelling solution.
What Makes IPOS Different:
The International IPO ETF is a transparent, rules-based fund that seeks to track the Renaissance International IPO Index (IPOXUS), aiming to provide investors with efficient exposure to newly public international companies before their inclusion in major benchmarks. The fund includes the largest, most liquid new stocks listed outside of the US, holding positions for up to three years after listing.
Note: IPOXUS only considers constituents eligible for inclusion if they trade on national exchanges that are not limited to accredited investors and that do not have restrictions on in-kind transactions.
Why IPOS for International IPO Exposure:
- Professional Selection and Diversification
Rather than researching individual international IPOs across multiple foreign exchanges with different languages, accounting standards, and regulatory frameworks, IPOS provides instant diversification across some of the most significant international IPO opportunities. - Simplified Access
IPOS trades on US exchanges just like any domestic ETF. Investors buy and sell through standard US brokerage accounts with no international trading agreements, foreign currency conversions, or complex tax reporting. - Early-Stage Growth Capture Potential
By holding companies for up to three years post-IPO, IPOS captures the period when newly public companies often experience their strongest growth. These companies are typically in rapid expansion phases, benefiting from fresh capital and public market discipline, before becoming mature "seasoned" stocks included in mainstream indices. - Avoiding Index Overlap
IPOS has almost no overlap with major international indices by weight. This can provide better portfolio diversification, rather than duplicating existing holdings. - Systematic Approach
Unlike actively managed international funds where managers make subjective decisions, IPOS follows a transparent, rules-based methodology. Investors know exactly why companies enter and exit the fund, offering consistent exposure to the international IPO opportunity set.
Considerations for International Investing
International investing introduces several additional considerations, including currency risk, where foreign exchange movements can amplify or offset returns, as well as country-specific risks such as regulatory changes and political instability. Investors may also face withholding taxes on dividends, differing accounting standards (such as IFRS vs. US GAAP), and less frequent or less transparent reporting, all of which can complicate analysis. Additionally, direct international trading often comes with higher costs, including commissions, FX conversion fees, and wider bid-ask spreads.
These risks extend to investments in IPOS as well. For those seeking exposure to newly public companies abroad, however, a diversified, US-traded vehicle like IPOS can help simplify access while mitigating many of these complexities.
A World of Opportunity
The international IPO renaissance in 2025 demonstrates that there are many dynamic companies, fast-growing markets, and compelling growth stories outside of US markets.
For American investors, this creates both challenge and opportunity. But the path to international IPO exposure doesn’t need to be daunting. Tools like the Renaissance International IPO ETF provide systematic, diversified access through familiar US-traded vehicles. For investors willing to engage directly with international markets, brokers offering global trading access open doors to opportunities unavailable through domestic-only investing.
As 2026 approaches, a strong pipeline of new listings in Asia, Europe, and beyond signal a robust international IPO opportunity. Whether through specialized ETFs like IPOS, direct international trading, or ADRs of international companies, investors ignoring these markets may risk missing transformative opportunities reshaping global industries.
Investments in the Renaissance International IPO ETF, symbol “IPOS”, are subject to investment risk, including possible loss of the principal amounts invested. The ETF invests in companies that have recently completed initial public offerings. These stocks are unseasoned equities lacking trading history, a track record of reporting to investors and widely available research coverage which may result in extreme price volatility. Due to a greater number of IPOs in certain segments, the ETF may also be subject to information technology and financial sector risk, small and mid-capitalization company risk, and emerging market risk. The ETF may hold securities in the form of Depository Receipts, REITs, and Partnership Units, which have greater risks than common shares. The strategy has high portfolio turnover and securities lending risks. The return of the ETF may not match the return of the respective index. The ETF is classified as non-diversified investment companies subject to concentration risk.
For a prospectus and/or summary prospectus with this and other information, please visit the document center at etfs.renaissancecapital.com. Investors should read the prospectus and consider the investment objectives, risks, charges and expenses carefully before investing.
Companies mentioned in this article may be held by the fund. For a list of the Renaissance International IPO ETF's top 10 holdings, please click here. Fund holdings are subject to change.
Foreside Fund Services, LLC, is the distributor for the ETFs. For additional information, contact Foreside at 1-866-486-6645.