By Patturaja Murugaboopathy

June 19 (Reuters) - Global equity IPOs have plunged this

year, weighed down by heightened business uncertainty from U.S.

tariffs, elevated market volatility and higher interest rates

that have raised funding costs and made listings less appealing

for issuers.

According to LSEG data, as of June 17, global IPO volume has

declined about 9.3% year-on-year to $44.3 billion, the lowest

level in nine years.

U.S. IPO volumes dropped 12% to $12.3 billion, while Europe

saw a sharper 64% decline to $5.8 billion. In contrast,

Asia-Pacific IPO volumes have risen 28% to $16.8 billion so far

this year.

President Donald Trump's tariffs, which included a 10% blanket

levy plus targeted duties on U.S. trading partners, re-ignited

tensions in April. Despite his subsequent pause and negotiations

on trade and tariffs, businesses globally are uncertain about

demand and investment.

"It's not prudent for companies to go public right now. The

volatility in the market is unprecedented," said Isabelle

Freidheim, founder and managing partner at Athena Capital.

"There's real risk for tech companies that are still

figuring out profitability. If the stock drops after the IPO,

it's very hard to recover, especially for companies with less

steady cash flow or that aren't as mature."

Despite the broader slowdown, China and Japan have seen a

sharp pickup in listings, driven by regulatory easing and

improved sentiment. A standout was Chinese battery giant CATL,

which raised $4.6 billion in the world's largest IPO so far this

year, boosted by renewed market momentum following the U.S.

tariff truce.

At the same time, some analysts are cautiously optimistic

about a second-half recovery. U.S. IPO interest is showing signs

of a rebound, led by fintech firm Chime, which surged on its

debut. High-profile names such as Klarna, Gemini and Cerebras

are slated to list later this year.

"With U.S., European defence contractors and Indian consumer

names also filing, late-2025 could deliver a textbook

"trickle-then-torrent" if volatility behaves," said Michael

Ashley Schulman, chief investment officer at Running Point

Capital Advisors.