European companies are increasingly looking across the Atlantic for IPOs, attracted by the prospect of deeper liquidity, larger specialist investor pools, and higher valuations for growth- and technology-related businesses.

However, bankers and investors caution that a US listing is far from a guaranteed route to superior aftermarket performance.

European issuers, including German power generation solutions provider Innio Holding and Italian mobile applications developer Bending Spoons, both chose Nasdaq for their debuts in June, raising USD 2.8bn and USD 1.9bn respectively.

Those transactions helped European cross-border listings in the US surge to USD 6bn across four deals in 2026 YTD, already surpassing last year’s total of USD 2.1bn across nine deals.

The year is already shaping up to be the third-strongest for European issuers listing in the US in more than a decade, as companies continue to pursue broader investor access, stronger sector valuations, and a deeper pool of capital than is often available in Europe.

“Companies are still drawn by the scale of US capital markets and the quality of the specialist investor base,” an ECM adviser said. “The pipeline remains healthy and, provided markets stay open, we should see a number of additional names come through before year-end.”

US equities, like their European counterparts, have experienced bouts of volatility this year amid the Iran conflict, tariff uncertainty, and periodic concerns over the sustainability of AI-related capital expenditure. Despite those disruptions, markets have remained resilient, with the Nasdaq Composite up around 23% year-on-year and the NYSE Composite up roughly 16% as of 27 August.

The rally has been driven by continued AI investment, strong corporate earnings, resilient economic growth, and sustained demand for technology, infrastructure, and industrial companies exposed to long-term structural themes.

For comparison, the STOXX Europe 600 and FTSE 100 have both gained around 17% over the same period.

While equity markets on both sides of the Atlantic have performed strongly, IPO activity has been a markedly different story.

European IPO volumes rose to USD 12.3bn in 2026 YTD from USD 7.3bn a year earlier, representing growth of 68.5%. In contrast, US IPO volumes surged to USD 166bn from USD 42bn, an increase of 295%.

“The US market has benefited from a much broader reopening than Europe,” the ECM adviser said. “The SpaceX listing was exceptional in scale, but even excluding that transaction, US investors have been far more willing to support issuers with a strong growth story now.”

If market conditions remain supportive, 2026 could surpass the last three years’ raises from European companies listing in the US. In 2023, USD 6.7bn was raised across four deals, led by Arm Holdings’ USD 5.2bn Nasdaq debut.

The pipeline includes UK power and energy solutions provider Aggreko Ltd, UK AI data centre firm Nscale, Finnish health technology company Oura Health, and German haircare products manufacturer Wella.

This year’s pipeline compares favourably with previous years, acknowledged a US investor who recently met several prospective issuers.

Upcoming European candidates “came with compelling equity stories and mature business profiles heading into the post-Labour Day window,” the investor said. “Most have done a good job linking their growth projections to broader themes such as AI infrastructure, industrial investment and changing consumer behaviour.”

Not every American dream delivers

While European issuers continue to head west, recent performance demonstrates that a US listing does not automatically translate into success.

Arm Holdings and Amer Sports have been standout performers, rising 368% and 140%, respectively, from their offer prices. By contrast, Klarna has fallen 65% below its IPO price, while Birkenstock remains down 23%.

Among more recent deals, Bending Spoons has gained 42% since listing and Doncasters nearly 30%, while INNIO has fallen approximately 18%.

The divergence reflects investors’ preference for businesses tied to favoured themes such as AI infrastructure, software, semiconductors, and financial services.

“It’s a sign of a healthy equity market for there to be some winners and some losers,” an ECM banker said, noting that the US still provided the deepest pool of capital in the world.

Looking ahead, market participants remain cautiously optimistic, although they acknowledge the window could narrow quickly if volatility returns. Additionally, the window is narrower due to Labour Day and the midterm elections in the US in early November.

“The pipeline is there, but issuers still need to be realistic on valuation and timing,” the ECM adviser said. “If markets remain constructive, we should see several transactions come through this autumn, but 1H27 is increasingly becoming the preferred alternative for those unwilling to take execution risk.”