The "Paper Millionaires" Created by the IPO Wave: A Warning of 23% Shrinkage in Wealth for 21 New Tycoons

In the beginning of 2025, the global IPO market has ushered in a long-awaited recovery. The latest data disclosed by Bloomberg is remarkable — this wave of market activity has created 21 new billionaires overnight. However, the second half of the story is filled with the harsh reality: these newly minted billionaires, whose on-paper assets exceeded $1 billion on their first day of listing, saw their shareholdings’ value evaporate by an average of 23% within the following weeks or months.

According to the Bloomberg Billionaires Index tracking, this phenomenon reflects a deeper issue: the significant gap between IPO pricing and post-listing stock performance. After the initial day’s halo fades, market rationality often leads investors to adjust their expectations, causing the paper wealth represented by founders’ holdings to shrink accordingly.

The Asian IPO market, however, presents a completely different picture. India’s IPO market remains hot, continuously attracting overseas financing; Vietnam’s market is also not to be outdone, with GSM companies launching overseas listing plans, targeting a valuation of up to $20 billion, demonstrating Southeast Asia’s financing momentum; in contrast, Thailand’s IPO market is mired in difficulties, with activity continuing to decline; Japan’s situation is even more bleak — the number of listed small enterprises has fallen to a 12-year low, reflecting structural decline in developed markets’ IPO markets.

Behind this wealth shrinkage among new billionaires, there is a phenomenon worth cautioning: rapid listings may bring short-term wealth halos, but long-term value realization still requires market recognition. Regional divergence further highlights this — emerging markets still possess financing momentum, while mature markets are facing deep adjustments.