The IPO market's promising start to 2025 is faltering as volatility rises and geopolitical tensions mount. After a strong 2024 that saw global IPO volumes jump one-third to $155bn, the momentum is slowing. The Vix index currently sits at 23, well above the IPO-friendly threshold of 18, making companies hesitant to go public.

Several high-profile listings have already been postponed. Online travel agent Loveholidays is considering delaying its London IPO until after Easter, while Japanese digital payments provider PayPay paused its $1bn New York offering despite having SoftBank's backing. Market swings are creating particular challenges, with consumer discretionary stocks fluctuating between 6 per cent gains and 5 per cent losses year-to-date.

The market faces additional pressure from massive potential offerings. SpaceX alone could raise $45bn in a 3 per cent float at a $1.5tn valuation - nearly double the US IPO record. Elon Musk's planned mid-June launch timing creates a narrow window for other companies, as investors may need to conserve funds for the marquee offering. This concentration of mega-deals threatens to suck oxygen from the broader IPO market.