So far in 2026, European capital markets have proven to be robust and resilient despite volatile international markets. In the first three quarters, European IPO proceeds rose by more than 25 percent compared with the same period last year. It should be noted, however, that a large portion of European equity offerings was driven primarily by capital measures following IPOs.
“This clearly shows that while the capital markets are active, IPO timing remains selective! It also demonstrates that the value of a stock market listing lies not solely in the first day of trading, but above all in the ability to implement subsequent capital measures,” said Reiner Ehlerding, Managing Director of INSTANT IPO SE.
While traditional IPO windows remain unpredictable through the end of the year due to market volatility—and many IPO candidates are postponing their timelines to early 2027—an increasing number of companies are choosing reverse mergers and SPACs as the most flexible route to going public.
Ehlerding explains: “A suitable shell company can significantly reduce dependence on an IPO window. A shell company is no substitute for a sound business plan, but it significantly relieves companies of the burden of preparations and offers far more options for action, whereas traditional IPOs must wait for favorable market conditions, stable demand, and a positive valuation environment.”
In the case of a shell company, access to the stock market is made possible by acquiring a company that is already publicly traded. Shell companies can thus be understood as existing stock market platforms that serve as a starting point for companies to build their own public listing story. Using a shell company offers multiple advantages:
- Timing: Highly flexible, no dependence on IPO windows
- Predictability: Allows for independent preparation of the transaction
- Focus: Concentration solely on gaining access to the stock market
- Costs: Predictable, significantly lower costs
The value of a stock market debut is by no means determined solely by the momentum of the IPO, but above all by a robust business model with scalable growth prospects. Thus, an IPO and a reverse merger merely provide different instruments for gaining access to the stock market. While an IPO typically aims for a combined offering, a reverse merger initially provides access to an existing stock exchange platform with the option of a subsequent offering.
Current market analyses by INSTANT IPO show that while the capital market remains fundamentally receptive, the timing of traditional IPOs can be unpredictable. As a result, companies are increasingly turning to examining and carefully weighing the options of the various listing routes in parallel. Listing shells are thus becoming increasingly relevant in providing companies with greater flexibility in their path to the stock market.
About INSTANT IPO SE
INSTANT IPO SE is Europe’s first independent company specializing in rapid initial public offerings (IPOs), including reverse mergers and stock exchange listings. With over 25 years of capital markets experience and more than 100 successful IPOs, INSTANT IPO helps companies find the right path to the stock market—from traditional IPOs and direct listings to transactions involving a suitable shell company.