
Market volatility sees IPO activity come in under expectation
Initial public offering (IPOs) across the globe were up in both value and volume terms during the first quarter of this year but 'not to the extent that might have been forecasted' as IPO activity in Ireland remains 'subdued', a new report by consultancy firm EY shows.
According to the report, between January and March, the global IPO market saw a 20% growth in value to $29.3bn (€25.74bn) compared to the same period in 2024. In total, there were 291 IPOs across the globe during this period with the US experiencing the third-strongest first quarter performance in its history, with 59 listings.
However, while deal values and volumes were up over the same period in 2024, EY Ireland corporate finance partner, said 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.'
Mr McAleavey said that although IPOs held firm overall 'heightened volatility readings and a shaky outlook may now signal faltering investor sentiment for near-term future listings' adding that 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'.
On Irish IPO activity, Mr McAleavey said it remains 'subdued' as firms continue to raise private capital for investment or to seek an exit for shareholders.
While the immediate landscape appears quite unsettled, continued interest rate cuts by the ECB, together with more market stability in Europe could spur activity here in the domestic market.
EY Ireland said the outlook for the rest of the year remains unsettled as a result of the uncertainty rippling global markets.
'Those that have already listed in the first quarter are demonstrating varied aftermarket performance,' the company said.
'The new US administration's policy changes have created opportunities and risks.'
'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.'
EY said that the industries sector, which includes aerospace and defence companies, is experiencing a surge in investment globally due to heightened defence spending, which could boost IPO activity in this sector.
However, 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.
The company also noted that AI is emerging as a transformative force in the IPO landscape significantly influencing companies' growth trajectories.
Read More
Nearly 40% of people expect economy to be weaker by 2030

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Irish Independent
14 minutes ago
- Irish Independent
Sandyford offices offer 10pc net initial returns
They comprise numbers 15, 16 and 18 The Courtyard, on the intersection of Carmanhall Road and Ballymoss Road, located between the Luas green line station and Beacon South Quarter shopping centre. Sitting atop The Courtyard office development, their combined floor areas extend to a total gross internal area of 8,325 sqft. They have also been recently fully let to a subsidiary of Azets Ireland at a passing rent of €262,530 per annum until March 2028. Sean Molony of sole agents Knight Frank is seeking offers in excess of €2,390,000 for them and their 13 dedicated secure basement car-parking spaces. Specification includes raised access floors, suspended ceilings, air conditioning, lift access, private toilets, showers and kitchenette facilities. Their floor-to-ceiling height is a generous 2.7 metres which allows natural light to fill accommodation on some of the best floors within the scheme. The property is held on two co-terminus three-year leases commencing in March 2025. There is no tenant break option or rent review. Azets, a business and accountancy consultancy, employs more than 300 people in four Irish offices: two in Dublin at Mespil Road and Sandyford, as well as two in the south-east, in Enniscorthy and Waterford.


Irish Independent
25 minutes ago
- Irish Independent
EU's tariff ‘hitlist' will hurt Ireland more than other member states, says lobby group Ibec
The EU's planned countermeasures against Donald Trump's proposed tariffs would have a 'disproportionate' impact on Ireland and Irish business, according to an analysis by Ibec.


Irish Independent
30 minutes ago
- Irish Independent
Higher food prices for consumers are here to stay, says Agriculture Minister on trip to boost sales in Japan
Irish consumers have seen food prices rise more than 4pc in the past year, Central Statistics Office data showed in May. That's around three times faster than general consumer inflation. 'We historically had a long sustained period of very low food prices,' Mr Heydon said. 'Farmers will tell you that maybe those food prices were not matching the cost of production, and had put farmers in a very difficult space. We saw a significant increase in farmers' input costs, and the increase in the price of food didn't [initially] catch up. 'That has changed in more recent times, and I think the price of food and beverages is now more reflective of the cost of production, and I think it's unlikely to change.' He was speaking in Tokyo, where the minister and senior officials from the Department of Agriculture and Bord Bia are on a trade mission looking to expand Irish exports into the world's third largest economy. Mr Heydon had meetings with the Japanese ministers for agriculture and health. The minister said he was 'very mindful' of cost pressures and pointed to wider actions by Government, including Enterprise Minister Peter Burke, around competitiveness. However, his role as agriculture minister was to open the maximum number of opportunities and markets for Irish food and drink producers, to allow them to get the best possible return. Only 10pc of the food and drink we produce is consumed at home – 90pc is exported Food and agriculture represent 40pc of GDP in rural areas, Mr Heydon said. 'Only 10pc of the food and drink we produce is consumed at home – 90pc is exported. It is my job to make sure we get the best possible return for that.' Under a Japan-EU trade agreement that came into force in 2019, the Asian economy opened up to food imports in exchange for increased EU access for Japanese products, including cars and machinery. The deal means tariffs on imported Irish dairy and beef, once as high as 40pc, are being gradually eliminated. It was the first trade deal of its kind to include an explicit commitment to make a 'positive contribution' to combat climate change, creating an additional opportunity for eco-friendly products. Irish food sales to Japan have doubled since the 2019 trade agreement came into effect – though at just €168m last year, it remains a small fraction of Ireland's €19bn food exports. Cheese accounts for 34pc of Irish food sales in Japan, followed by pig meats (28pc), beef (14pc), fish (10pc) and beverages – including Irish whiskey (6pc). The market for butter remains restricted through non-tariff barriers, and full access for Irish poultry and cooked meats is under discussion. Despite its distance from Ireland, Japan represents a significant market opportunity and offers a strategic diversification away from dependence on the UK and US markets, Mr Heydon said. He said there is a pressing need to diversify with whiskey, due to the impact of US tariffs. The sector is now experiencing 'significant cash flow issues' following a decade of expansion and capital investment. Whiskey is a popular drink in Japan, with domestic producers and Scotch brands serving the market, offering an opportunity for Irish brands to expand. Japan is already the biggest importer of Irish beef tongue – accounting for around 70pc of the market. As the product is unpopular in Ireland and its immediate markets, this helps maximise the value per Irish beef carcass without adding to the number of animals slaughtered. Beef tongue is popular in Japan, sliced thin and grilled, and sold by restaurants including the Negishi chain of 49 outlets that serve 100,000 meals a week around Tokyo. There is also a market for premium steak cuts, with Ireland's leaner, grass-fed beef providing an alternative to the fat-rich wagyu style in which Japanese beef farms specialise. Local Japanese chefs say the leaner Irish alternative is finding a niche with younger, health-conscious consumers, helping overcome a perception that grass-fed beef is tough. The push from Ireland includes consumer goods. Keogh's Crisps has struck an agreement with a Japanese partner and is supplying a number of retailers, while Cashel Blue cheese has entered the market under its own branding. It's about developing relationships, building trust and respect Bord Bia CEO Jim O'Toole said Japan, along with South Korea, represented a significant opportunity for Irish producers but would take time to develop. Both countries have high levels of disposable income and neither is self-sufficient in food, so they are both often among the top five of global import markets. For Irish producers, understanding the market cultures and the mechanics of supply chains was vital. 'The business culture is specific and quite formal and Japanese buyers don't do things opportunistically,' Mr O'Toole said. 'It's about developing relationships, building trust and respect, and developing that for an enduring business.' He sees a market opportunity in fish, as Ireland is already shipping mackerel. 'To the point about the discerning quality demands of Japanese buyers, I know in some processing plants in Ireland, there will be a Japanese person watching to make sure that the specification is fulfilled,' he said. 'So this is not about quick wins. This is about painstaking detail.'