2026 ECM Mid-Year Update
The Issuance Wave Looks Set to Continue
The U.S. equity capital markets staged a powerful recovery in the first half of 2026, with the second quarter alone producing a record $120+ billion in IPO proceeds across 50+ deals. Against that backdrop, Baird's ECM franchise delivered one of its most active and diverse halves on record, completing 52 transactions and raising more than $33 billion for corporate and sponsor-backed clients across seven sectors. The window that reopened around AI infrastructure and defense is now broadening, and the pipeline heading into the second half is the deepest in years. Below is a look at our first-half activity and where we see the market going from here.
Baird Ranks #1 as Middle-Market IPO Underwriter1
- 52 total ECM transactions
- $33+ billion in total capital raised
- Bookrunner on ~90% of IPOs
- Completed transactions across 7 sectors
- 15+ different financial sponsors
- Equity deal size ranging from $150M to ~$3B
Select Baird ECM Transactions
From a Volatility Spike to a Record First Half
- After a late-Q1 sell-off in AI-exposed software and the outbreak of conflict in Iran, the IPO market rebounded sharply in April
- Q2 2026 set an all-time record for the IPO market, with more than $120 billion raised across 50+ IPOs and 10 deals of $1 billion or more, the most in a quarter since 2021. Even excluding SpaceX's $86 billion deal, the $30+ billion raised was still the highest quarterly total since 2021
- Median deal size rose to $400 million in Q2 2026, a post-2009 high, as larger, higher-quality issuers came to market
- PE-backed issuers had their busiest quarter since 2021 in Q2 as 20+ IPOs priced, raising more than $15 billion in capital
- Activity clustered in AI infrastructure, aerospace and defense, energy and biotech, while venture-backed software stayed largely on the sidelines
- The follow-on market accelerated meaningfully through the first half of 2026, with 250+ deals pricing raising ~$110+ billion in capital, up >40% and >35% y/y, respectively
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Nearly two-thirds of follow-ons (above $15 million) are trading above their offer price, reflecting a constructive aftermarket and healthy investor receptivity
The Equity Issuance Wave Looks Set to Continue
- The IPO backlog is the deepest since 2021, with high-profile companies currently on confidential file and another 200 private companies as candidates to go public within the next 24 months
- A run of well-received listings has unlocked a much larger backlog, producing one of the more constructive ECM backdrops in years
- Sponsor-backed issuers are expected to drive the next leg, with timing accelerating into the post-Labor Day window ahead of the November midterms
- Investor appetite is extending past AI and defense into a broader set of sectors, with software and financials showing early signs of life
- New equity issuance over the next two years is expected to be one of the strongest periods since at least the late 1990s with supply concerns likely being overstated as total equity issuance is expected to represent only 1% of total market capitalization, below the long-term average
- Even with the market window open, investors remain selective with demand concentrated in must-own assets experiencing industry tailwinds
- With a large class of recently public companies now trading, follow-on and sponsor-led secondary activity should build through the second half and into 2027, provided markets stay receptive
Related Links
1CMG as of June 30, 2026. Includes U.S. IPOs greater than $100 million in base offering size. Excludes SPACs. Ranking by number of IPOs priced.