Global IPOs climb in first quarter of 2025 even as uncertainty looms over financial markets

• Global IPO market recovered with 291 IPOs raising US$29.3b, a 20% YOY growth by value
• Heightened market volatility and an uncertain geopolitical outlook leading to faltering investor sentiment and shelving of some IPOs
• The US experienced the third-strongest Q1 performance in its history with 59 listings

Dublin, 28 April 2025: Global IPO markets experienced uncertainty in the first quarter of 2025, with significant and volatile geopolitical shifts as well as the rise of disruptive artificial intelligence (AI) models impacting broader financial markets and new listings. Despite challenging circumstances however, markets demonstrated resilience in Q1 2025, with an increase in both deal volume and value globally, according to the latest EY Global IPO Trends Report. Globally, a total of 291 IPOs raised US$29.3b in the first quarter of 2025, with total deal value up 20% compared to the first quarter of 2024, while deal volume was up 3% in the same period. 

The number of Q1 2025 IPOs in the Americas increased by 51% compared with Q1 2024, as positive market conditions at the start of the year facilitated the transition to the public markets. In the US, cross-border deals accounted for 58% of the new listings this quarter as the strength of the US as the premier location for funding and realising value remains.

In EMEIA (Europe, Middle East, India and Africa), significant US policy shifts under a new administration put Europe in the middle of significant geopolitical crosswinds and brought more uncertainty to its IPO market. However, the Middle East continued to perform well, while India stood out for its substantial deal value despite a decline in volume. Overall, the region saw 113 companies go public, raising US$9.5b, a YOY decline of 9% and 4%, respectively. Interestingly, the average age of European companies at the time of their IPO has more than doubled, climbing from 20 years in 2021 to 42 years in Q1 2025.

Asia-Pacific markets showed signs of recovery, reclaiming the lead area in IPO volume and value, with Japan contributing the largest global IPO this quarter. Hong Kong, South Korea and Malaysia all recorded robust growth, however the Chinese mainland and Oceania remain subdued.

Fergal McAleavey, EY Ireland Corporate Finance Partner, says:

“After an improved first quarter for IPO’s globally, with deal values up by 20% over the same quarter in 2024, global financial markets have more recently been impacted by heightened volatility and uncertainty, with a knock-on impact on the IPO landscape for upcoming quarters. 

“Positively, IPOs were up globally in terms of both volume and value in the quarter, although not to the extent that might have been forecasted even at the start of the year. Although IPOs held firm overall, heightened volatility readings and a shaky outlook may now signal faltering investor sentiment for near-term future listings. A number of high-profile companies planning to list in the first half of 2025 have now delayed their IPOs to later quarters or even early 2026 as they wait for markets to settle and some certainty to return. 

“In Ireland IPO activity continues to remain subdued, as firms continue to raise private capital (venture capital or private equity) for investment or to seek an exit for shareholders. While the immediate landscape appears quite unsettled, continued interest rates cuts by the ECB, together with more market stability in Europe could spur activity here in the domestic market.”

Outlook for 2025 Remains Unsettled

As a result of the uncertainty rippling global markets, some companies that had initially targeted a listing the first part of the year have delayed their IPOs to later quarters or even early 2026. Those that have already listed in the first quarter are demonstrating varied aftermarket performance. Meanwhile, stock markets in major economies dropped sharply from late March into April and have somewhat recovered in value as the month draws to a close, but still below the highs from the start of the year, dashing earlier hopes of sustained peak valuations across major regions. 

The new US administration's policy changes have created opportunities and risks. Inflation expectations have risen, with tariff moves casting uncertainty over monetary policy. The US, however, is set to keep attracting international listings. 

Globally, the Industrials sector, including Aerospace and Defence, is experiencing a surge in investment globally due to heightened defence spending, which could boost IPO activity in this sector. Conversely new policies from the US administration have also led to a chilling effect on environmental, social, and governance (ESG) efforts, as companies grapple with an uneven regulatory landscape across markets. 

Despite the challenges posed by geopolitical tensions, mounting trade tariffs, a cooling economic outlook, rising inflation risks, and short-term market volatility, there are positive indicators such as a robust global IPO pipeline and targeted government support to key sectors.  

AI Increasingly Impacting IPO landscape

AI is emerging as a transformative force in the IPO landscape, significantly influencing companies’ growth trajectories. Companies across various sectors are leveraging AI to streamline operations and maximise their chances of successful public offerings. Notably, the Technology, Health and Life Sciences and Financials sectors most often mentioned AI in corporate fillings, with AI a central part of the company narratives for recent IPO cohort. Interestingly, however, the reported breakthroughs earlier this year by AI firm Deepseek in particular on the cost, scale, and speed of training its GenAI foundation models have prompted markets to reassess valuations across the broader tech sector, with a knock-on impact on potential IPO returns for tech companies.

The data presented here is available on ey.ie/ipo/trends.

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About the data

Q1 2025 refers to the first quarter of 2025 and covers completed IPOs from 1 January to 31 March 2025. Q1 2024 refers to the first quarter of 2024 and covers completed IPOs from 1 January to 31 March 2024. 2024 refers to the full calendar year and covers completed IPOs from 1 January 2024 to 31 December 2024. 

All data contained in this document is sourced from Dealogic, Mergermarket, PitchBook, S&P Capital IQ, AlphaSense and EY analysis unless otherwise noted. The Dealogic data in this report are under license by ION. ION retains and reserves all rights in such data. Special purpose acquisition company SPAC data are excluded from all data in this report, except where indicated.