Navigating uncertainty: Q1 2025 global IPO insights

• Global IPO market recovered with 291 IPOs raising US$29.3b, a 20% YOY growth by value
• Asia-Pacific showed signs of recovery; Southeast Asia saw a decline in IPO volume and value
• AI has become a central part of the company narratives for Technology, Financials and Health and Life Sciences IPO candidates

Global IPO markets in the first quarter of 2025 have experienced profound uncertainty, shaped by significant geopolitical shifts and the rise of disruptive artificial intelligence (AI) models. A total of 291 IPOs raised US$29.3b globally, maintaining steady volume compared with Q1 2024 while increasing total deal value by 20%. The US excelled in IPO activity, Asia-Pacific markets showed signs of recovery and EMEIA held steady.

The new US administration's sweeping policy changes have created opportunities and risks. Inflation expectations have risen, and the tariffs will only further fuel inflationary pressures in the US and around the world, casting uncertainty over monetary policy. The Aerospace and Defense sector is experiencing a surge in investment globally due to heightened defense spending, which could boost IPO activity in this sector. Yet, new policies have also led to a chilling effect on environmental, social, and governance (ESG) efforts, as companies grapple with an uneven regulatory landscape across markets. IPO candidates are increasingly leveraging AI to enhance market strategies and operational efficiencies, signaling a transformative impact on how businesses prepare for and execute public offerings.

George Chan, EY Global IPO Leader, says: 
“Entering 2025, a flurry of emerging dynamics is heightening volatility and uncertainty across the IPO landscape. As geopolitical tremors rewrite rulebooks, post-election policies redraw borders of opportunity and technology disruption upends expectations, success will belong to those who anchor to unshakable fundamentals, and steer through shifting environments with preparation, agility and adaptability to seize the decisive moment.”

2025 Q1 regional performance

Asia-Pacific 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.

Southeast Asia saw a year-on-year (YOY) decline in IPO volume and value, registering 27 listings that raised US$0.7b in Q1 2025, down from 37 IPOs that raised US$0.8b a year ago. Malaysia saw an 18-year high with 14 listings of moderate deal size that raised US$0.3b (compared with 9 deals raising US$0.3b in Q1 2024). Other markets that saw IPO activity included Indonesia (11 IPOs raising US$0.4b in Q1 2025, down from 19 IPOs raising US$0.2b in Q1 2024) and Thailand (2 IPOs raising US$0.15b, down from 4 IPOs raising US$0.3b). 

Chan Yew Kiang, EY Asean IPO Leader, says: 
“In the past quarters, Malaysia’s economic growth had been a major driver of IPO activity. The Securities Commission Malaysia and Bursa Malaysia have been driving regulatory reforms and providing incentives for listings, which, together with continued growth and participation from domestic institutional and retail investors, have resulted in improved liquidity and valuation for Malaysia equities. In Singapore, the Monetary Authority of Singapore has implemented measures to revitalize the equities market. As the market awaits details of the initiatives, there has been increased interest and inquiries from companies in the region to consider listing in the country. 

However, the uncertain macroeconomic and geopolitical dynamics following the announcements of trade tariffs may likely affect investor sentiments. This may impact the valuation of companies looking to tap the capital market and with it, the pipeline of IPO activity in the immediate and near term.” 

The number of Q1 2025 IPOs in the Americas increased by 51% compared with Q1 2024, as constructive market conditions early in the quarter facilitated the transition to the public markets. In the US, cross-border deals accounted for 58% of the new listings this quarter.

In EMEIA, significant US policy shifts under a new administration put Europe in the middle of a geopolitical storm 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.

AI transforming 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 maximize 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. 

2025 outlook

Caught in the vortex of uncertainty, some companies initially planning to list in 2025, particularly those targeting the first quarter 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 cratered from late March into early April amid a tariff-induced storm, dashing earlier hopes of sustained peak valuations across major regions. Though IPOs held firm this quarter, heightened volatility readings and a shaky outlook now signal faltering investor sentiment for near-term future listings. The US, however, is set to keep attracting international listings. The Industrials sector, including Aerospace and Defense, is also poised for sustained growth in 2025, driven by a solid pipeline and regulatory support.

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.  

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Notes to editors

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About the data

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

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.