The IPO market has decisively turned a corner in Q3 2025, with heavyweight deals like Zijin Gold International raising $3.2 billion in its Hong Kong listing and Netskope generating $908 million in its U.S. IPO. These listings, alongside strong investor demand and first-day pops, signal a revitalization of the market that has been subdued by macroeconomic uncertainty.
Company Background:
Zijin Gold, a subsidiary of China’s mining giant Zijin Mining, is well-known in the global precious metals sector. It focuses on gold extraction and mining operations across multiple geographies including China and overseas regions. It is leveraging historically high gold prices to fund growth in overseas mines, emphasizing production expansion and increased output. Meanwhile, Netskope is a cybersecurity and cloud security firm founded in 2012, which provides software solutions for enterprises looking to protect cloud-based assets and data. Backed by investors such as Iconiq, and operating with rapid revenue growth, Netskope has established itself among firms riding both cybersecurity tailwinds and increasing investor hunger for cloud and security offerings.
IPO Details:
Zijin Gold is offering 349 million shares at HK$71.59 apiece, targeting a valuation near US$24.1 billion. It represents the largest Hong Kong IPO in 2025. Cornerstone investors including Singapore’s GIC, BlackRock, and Schroders have committed to a large tranche of the proceeds, which will be used to fund mine upgrades and construction abroad.
Netskope priced its IPO on Nasdaq at US$19 per share, raising approximately $908 million, with a valuation of about US$7.4 billion. Its offering was at the top of its adjusted marketing range and signaled strong demand: its first-day trading saw the share price jump around 18%.
Market Context & Opportunities:
These IPOs are occurring in an environment where investor sentiment is improving, especially for larger, quality companies with clear growth paths. For example, Q3’s performance has included more deals raising over $100 million than in previous quarters, and strong first-day trading has begun to restore confidence.
For sectors like cybersecurity (Netskope) and natural resources (Zijin Gold), macro trends are favorable—cyber threats remain pervasive and critical infrastructure needs continue to grow, while gold has been benefiting from geopolitical risk and inflation hedging. The strong performance of large IPOs helps widen the window for firms that have been waiting for better valuations or market conditions.
Risks & Challenges:
Despite the resurgence in IPO activity, headwinds remain. Rising interest rates, inflationary pressures, and global economic uncertainty could dampen investor appetite or lead to volatility post-IPO. Valuations are under scrutiny, especially from institutions worried about long-term profitability rather than hype. Firms without clear paths to stable revenue or profitability might struggle to sustain their gains after listing. Regulatory risk—particularly for offerings spanning multiple jurisdictions—also looms large, especially in mining and cybersecurity. Lastly, while first-day pops generate buzz, sustained performance in the aftermarket is often harder to deliver.
Closing Paragraph:
The recent listings of Zijin Gold and Netskope underscore that IPO momentum is more than just headline news—it reflects a market recalibration toward companies with strong fundamentals and compelling growth stories. Whether this trend evolves into a sustained wave of offerings will depend on macroeconomic stability, investor discipline on valuations, and companies’ ability to deliver post-IPO performance. For now, the IPO market appears to be shaking off its doldrums—and investors watching closely may find opportunities in this renewed opening.
