IPO "False Fire" Flare-up, New Wealth in 2025 Shrinks by Over 20%

The warming of the IPO market in 2025 indeed gave rise to a new wave of billionaires, but this prosperity seems to have only played out in one act. According to the Bloomberg Billionaires Index, 21 new billionaires saw their net worth surpass the billion-dollar mark due to listings in recent times. However, the good times didn’t last—these individuals’ holdings’ value shrank by an average of 23% over the following weeks to months.

This “roller coaster” wealth trajectory reflects a rational correction after the sharp rise on IPO debut day. The enthusiasm during new stock listings often drives share prices higher, causing early shareholders’ paper wealth to swell instantly. But as the market returns to rationality and secondary market investors take profits, a decline in share prices becomes inevitable.

Interestingly, while the global IPO market is heating up, the performance across Asia presents a starkly different picture. India’s IPO market remains hot, and Vietnam’s GSM company is planning to go overseas with a target valuation of up to $20 billion. These emerging markets are releasing strong financing demands. In contrast, Thailand’s IPO market continues to languish, and the number of small IPOs in Japan has fallen to a 12-year low, indicating a clear lack of financing vitality in mature markets.

Behind this divergence, it not only reflects differences in economic vitality across regions but also exposes the saturation of IPO financing demand in mature markets. For those 21 new billionaires, this fluctuation in wealth is also a lesson—paper wealth needs time to be tested.