Europe Eyes Old IPOs Amid AI Rout

The European IPO recovery signals a fundamental market shift rather than temporary enthusiasm. Sustained momentum depends on maintaining stabilized interest rates, contained market volatility, and reduced geopolitical tensions[4]. The concentration of activity in defense, energy, and private equity-backed exits suggests investor preference for sectors with tangible assets and clear business models over speculative growth plays. However, European capital markets' structural fragmentation—with 63% of survey respondents citing significant gaps in regulation, policy, taxation, and operational processes—remains a long-term constraint on capital formation competitiveness versus U.S. markets[5]. The success of 2026 IPO activity may accelerate pressure for harmonization of post-trade processes across European exchanges.