European IPO Market Starts 2026 at Record Pace

The European IPO market has begun 2026 at a record pace, with 23 primary IPOs in the first quarter, the highest Q1 total since 2018. The defence sector is driving the surge, with the largest single-deal size (CSG, €750m) and the steepest first-day price jump (+32%). The technology sector follows closely, buoyed by AI-related hardware and semiconductor exposure.

The total proceeds from the first-quarter IPO pipeline generated approximately €4.2 billion in gross proceeds, with defence alone contributing approximately €1.1 billion. The average first-day price appreciation across the 23 IPOs was +14%, with defence listings outperforming at +21% and technology listings averaging +11%.

Market participants are optimistic about the momentum and positivity towards European shares, with Steve Sosnick, Chief Market Analyst at Interactive Brokers, stating that ‘Europe has mostly held on to its gains… the momentum and positivity towards European shares continue and that’s a good sign.’

Sector Performance

The defence sector is finally getting the capital it needs after years of under-investment, and the market is rewarding that with strong pricing. Tech companies tied to AI-enabled data-centre hardware are seeing the strongest demand from investors looking for growth beyond the traditional software space.

Conclusion

The European IPO market’s record pace in 2026 is driven by the defence and technology sectors, with both sectors posting double-digit first-day gains. This surge is not a one-off but a sector-wide revival, reinforcing the view that the momentum and positivity towards European shares will continue.

Sources