The outlook for corporate equity supply and demand in 2027

2026 is on track to be a record year for US equity issuance. US corporates have raised $431 billion YTD via IPOs, follow-ons, converts, and SPACs, representing growth of 98% year/year. The total dollar volume of US equity issuance in 2026 will likely surpass the previous high of $540 billion in 2021. We expect corporate equity issuance will total $600 billion in 2027, with IPO volume of $175 billion and other primary supply of $425 billion; this issuance would collectively equate to 0.8% of US equity market cap, in line with the 10-year average. Equity capital should continue to play a supporting role in funding the AI investment boom; AI-related follow-on issuance has totaled $65 billion year to date, accounting for 45% of US equity follow-on volumes. Resilient corporate equity demand will help offset ongoing equity issuance;