The U.S.-China tariff war has temporarily paused, and as the stock market regains its vitality, initial public offering (IPO) activities are becoming active. Corporations not directly linked to trade are trying to finalize their IPOs before the tariff war reignites.
According to Bloomberg News on the 15th (local time), the amount raised through IPOs in global stock markets this year stands at $43.6 billion (approximately 61 trillion won), which is similar to the same period last year. Last month, after the Donald Trump administration imposed a “reciprocal tariff,” monthly IPO performance was the worst since the pandemic in 2020, but as the two countries entered a ceasefire, halted IPOs are resuming.
One representative example is the Israel-based stock and cryptocurrency transaction corporation eToro, which went public on the New York Stock Exchange on the 14th, two days after the U.S.-China ceasefire. eToro set its offering price at $52, higher than market expectations, and closed its first trading day at $67, up 29% from the offering price.
The American fintech corporation Chime is preparing for a public listing on the New York Stock Exchange before the summer off-season. Considering that it filed its listing application on the 14th, it is highly likely that the listing will occur in early June. Chime was valued at $25 billion (approximately 35 trillion won) in its investment round in 2021. Additionally, the IPOs of TV advertising platform company MNTN and healthcare corporation Hinge Health are imminent.
Keith Canton, North American equity capital markets head at JP Morgan Chase, noted, “Thanks to the recent tariff news, the market has emerged from uncertainty,” adding that “the worst case resulting from tariffs will likely not materialize.”
This IPO parade contrasts sharply with last month’s market atmosphere. Following the so-called “Day of Liberation” tariffs imposed by President Trump, market uncertainty escalated, leading to the suspension of global stock market IPOs. In the U.S., the listings of ticket platform StubHub and medical supply company Medline Industries were delayed, while in Europe, investment company Greenbridge and in Asia, LG Electronics' Indian subsidiary had their listings suspended.
The change in atmosphere began in early May when the U.S. started serious tariff negotiations with major trading partners. The volatility index (VIX) of the Chicago Board Options Exchange, known as the fear index of the U.S. market, surged to 60 at the announcement of the reciprocal tariff but gradually declined, dropping below 20 after the U.S.-China agreement. Bloomberg News reported this as a stable level to reconsider the progress of IPOs.
Bloomberg News reported, “With numerous holidays at the end of May, in June, and early July, corporations considering listings on the New York Stock Exchange before the summer off-season have no time to delay,” noting that “as the end of the 90-day tariff suspension approaches, they must closely monitor the developments in U.S.-China trade negotiations.”