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
RTÉ News
an hour ago
- RTÉ News
€90m in counterfeit food, drink seized in EU last year
Over €90 million in counterfeit food and drink products were seized across the European Union last year, according to the EU's Intellectual Property Office (EUIPO). Counterfeit products are often associated with luxury goods but food products are the second most seized category of products at the EU's external borders. Over 3,600 EU food and drink products are protected by geographical indications (GIs), which protect the names of products that originate from specific regions and possess qualities or characteristics due to that geographical environment. For example, Irish whiskey is a protected product name, meaning whiskey produced outside Ireland cannot legally be labelled as Irish whiskey. Other protected Irish brands include Achill Island Sea Salt, Sneem Black Pudding, Irish Grass Fed Beef, and the Waterford Blaa. EUIPO said that wines and spirits face one of the highest counterfeiting rates compared to other products, with annual losses in sales of €2.28 billion and nearly 5,700 jobs in the EU across all categories. For Irish products, €40 million in sales are lost each year in this sector. Last year's €90 million worth of seizures of counterfeit food and drink products were coordinated by Europol and Interpol, and amounted to 22,000 tonnes of food and around 850,000 litres of (mostly alcoholic) drinks. EUIPO said the operation resulted in 11 criminal networks being dismantled and 278 people reported to judicial authorities in connection with the counterfeits. According to the report, France, Italy and Germany lead in both production and consumption of geographically protected products, with France alone accounting for nearly 32% of EU GI product sales. Wine constitutes 54% of the total EU GI consumption, which makes it particularly vulnerable to counterfeiting. Other products heavily impacted by counterfeiting include olive oil, beer, meat, cheese, and dairy products. The EU agency said that when counterfeiting of drinks, particularly alcoholic drinks, organised crime groups employ sophisticated methods to deceive consumers. Counterfeiters frequently reuse original bottles or print fake labels to place on empty bottles, making it harder for consumers and authorities to distinguish between legitimate and fraudulent products. Apart from the economic loss, in its report, the EU Intellectual Property Office points to health concerns over counterfeit food and drink products, with some of the seized items containing dangerous substances, including methanol, mercury, fipronil, and toxic pesticides. China and Turkey are listed as being among the most frequently reported countries of origin for counterfeit food and drinks in the EU. Along with the report entitled 'What's on your table?', the EUIPO is highlighting ways for consumers to avoid fake products, including buying from official retailers and verifying product labelling. EUIPO Executive Director João Negrão said that counterfeit food and drink products are a "major public health concern". "Our campaign aims to equip consumers with the knowledge to protect themselves while supporting legitimate businesses that uphold EU quality standards. This is a battle we must fight together: authorities, producers and consumers alike," he added.
RTÉ News
an hour ago
- RTÉ News
Harris urges exemption for key sectors from retaliatory tariffs
Tánaiste Simon Harris has urged the EU's trade commissioner to exempt sectors key to the Irish economy, such as aviation, medical, agrifood and the equine industry, from any retaliatory tariffs the EU could impose on a range of US products should the current trade negotiations fail. In a letter to Maroš Šefčovič, seen by RTÉ News, the Minister for Foreign Affairs and Trade also urged the trade commissioner, previously the EU's Brexit negotiator, to ensure that Europe's potential retaliation against US President Donald Trump's threat of sweeping tariffs does not adversely impact Northern Ireland. The letter essentially sets out the Government's position as the deadline for a potential escalation of the trade war between President Trump and the European Union looms. Talks between EU and US trade officials have been intensifying in recent days in an effort to avert wholesale US tariffs on European goods, which in turn would trigger a significant retaliatory response by the EU. On 2 April, President Trump announced 20% "reciprocal" tariffs on nearly all European goods, as well as sweeping duties on scores of other countries. After turbulence on the bond markets Mr Trump paused the 20% tariffs for 90 days (until 9 July). Negotiations between the European Commission, led by Mr Šefčovič, and the Trump administration, led by Trade Secretary Jamieson Greer and Commerce Secretary Howard Lutnick, then got under way. Last month, Mr Trump threatened to hit the EU with 50% tariffs, complaining that negotiations were "going nowhere". That threat was lifted following a phone call with European Commission President Ursula von der Leyen. US and EU teams negotiating a potential trade deal that would lift the threat of mutual tariffs have intensified their work in recent days. Despite that the EU has been readying a list of hundreds of US product lines worth some €95 billion which could be hit by retaliatory tariffs should those negotiations fail. The list, which was published on 8 May, was followed by a four week consultation period between the European Commission and member states. Mr Harris's letter to Mr Šefčovič essentially codifies Ireland's concerns about the damage the list could do to key sectors of the Irish economy. He wrote: "I have heard concerns both about the immediate impact of the proposed rebalancing measures on imports, but also about the potential for them to result in further retaliatory action by the US. "I believe this is a reasonable and well-founded concern which we must also take account of in formulating our approach. It is particularly acute in the agri-food and drinks sector." The Tánaiste highlights the risk to Ireland's "leading" role in the global aviation sector, given that it is home to Ryanair, "Europe's largest airline, as well as the world's leading aircraft leasing sector." The Government believes that the leasing sector would be damaged given its reliance on US spare parts. "Given the limited capacity of EU manufacturers to meet demand in the sector, I believe that rules of origin for goods with a very long service life, such as whole aircraft and helicopters, need to be very carefully considered in the eventual approach to applying tariffs. "Specifically, I would ask that used aircraft are excluded from import tariffs," he wrote. The Tánaiste also highlighted the risk to Ireland's medtech industry, which relies heavily on an integrated supply chain with the United States. He wrote: "I have consulted with stakeholders and have concerns about the potential impact of the proposed list, which includes a large number of tariff lines (around 800) which could potentially impact on essential medical devices for European patients. "I would ask that you engage in detail with the medtech sector to ensure that our rebalancing measures are targeted in a way that does not undermine this important sector and the lifesaving technologies they supply to consumers across the EU." He said that while it may be "theoretically possible" for companies to switch suppliers, in practice this was not an immediate option in the short term due to the regulatory and certification requirements. Mr Harris also raised "an issue of serious concern in Ireland," namely the potential for the EU to retaliate by imposing tariffs on animal feed "for which Irish farmers have a very high reliance on imports from the US." He wrote: "Increasing costs on these vital inputs will not only put further pressure on a stressed sector but risks feeding through in increased prices for consumers (in one area, beet pulp, Ireland accounts for the entirety of EU imports)." The Tánaiste also raised concerns about the inclusion of pure breeding horses on the EU's list of countermeasures. He wrote: "The equine sector provides significant employment in rural areas, with the US by the far the largest export market for Irish thoroughbreds outside the UK. "This trade depends on horses moving in both directions. I would ask that these items be removed from the list - doing so will have a very limited impact on the overall value of the list and would reduce disproportionate impact on Ireland." The Tánaiste concluded by warning about the risk of EU retaliatory measures to Northern Ireland, given its hybrid trade status post-Brexit. "I would also like to highlight the need to minimise unintended consequences on Northern Ireland of the current situation to the extent possible," he wrote. "Considering your deep experience from EU-UK negotiations, and your continuing responsibilities in that relationship, I know you will appreciate that this is a politically sensitive topic and will need careful management." The Government is understood to be relieved that neither pharmaceuticals nor dairy products appear on the list of EU countermeasures. Officials have stressed that while aircraft, spirits, including whiskey, and medical devices are included, the EU's retaliatory measures would be implemented immediately and may not be implemented at all if a deal is reached. While officials have said EU and US teams are making progress, it is understood the final say on whether a trade agreement can avert an escalating trade war will go to President Trump.
Agriland
2 hours ago
- Agriland
How many farmers are in the Advantage Beef Programme?
The Advantage Beef Programme has been one of the most significant developments in the Irish beef industry in recent times as regards beef processors' commitment to sustainability. The sustainability initiative is a true example of a beef processor 'putting their money where their mouth is' and sees ABP Food Group reward its farmer-suppliers who are Advantage Beef Programme members with an additional 20c/kg 'Sustainability Bonus' on all cattle that meet the criteria of the initiative. Launched in 2022, the Advantage Beef Programme now has over 1,000 farmer members, with 35,000 cattle processed through the sustainability initiative last year. On a percentage basis, 51% of the cattle slaughtered through the sustainability initiative are dairy-beef cattle, 30% are suckler-bred cattle, and 19% are dairy-sired cattle. The success of the initiative was highlighted at a special event on the ABP Demo Farm on yesterday (June 10), to mark the 10-year-anniversary of the ABP Demo Farm. Since its inception, over 2,000 farmers have attended ABP-run farmer information events. Suckler-beef farmer Jimmy Madigan speaking to ABP farm liaison team leader Amie Coonan on his involvement in the Advantage Beef Programme at the 10-year anniversary event of the ABP Demo Farm As part of the initiative, ABP has a dedicated team of Advantage Beef Programme farm liaison officers on-hand to offer farmers support and advice on all aspects relating to fattening and finishing cattle in an economical and environmentally sustainable manner. Initiatives run through the Advantage Beef Programme – such as linking dairy-beef calves with a high beef genetic merit with beef farmers seeking to rear calves – has seen over 6,000 calves linked with dairy and beef farmers. As well as the price bonus available to farmers, valuable services such as soil testing, silage testing, dung sampling, and valuable advice on genetics, diet formulation, soil health and grassland management is also available to member farmers free of charge. Farmers can keep up-to-date with the latest news and developments in the Advantage Beef Programme through the Agriland app.
