Panel Discussion: The Decline of IPOs in the United States and Europe

Over the past decade, both the US and European markets have experienced a sustained reduction in IPO activity, even though they remain among the most advanced and liquid capital markets globally. A central explanation is the rapid expansion of private equity and venture capital, which allows firms - especially high-growth companies - to raise substantial funding without going public. This reduces the need to list and delays (or replaces) IPOs. Stricter disclosure, governance and reporting requirements in public markets have also increased the costs and complexity of being listed, making private financing relatively more attractive. 

Changes in market structure - such as reduced research coverage for smaller firms, lower liquidity in some segments and short-term market pressures - have made public markets less appealing, particularly for smaller or innovative companies. The decline in the United States and Europe is also contrasted with a significant expansion in Asian markets, suggesting a relative loss of attractiveness and competitiveness in attracting new listings. 

Overall, the decline of IPOs reflects a broader transformation in corporate financing, where private markets play a larger role and public markets face increasing competitive and regulatory challenges.