Latest news with #FergalMcAleavey
Observer
03-08-2025
- Business
- Observer
Stock market IPOs up in the US and down in Europe
Worldwide, there were 539 stock market flotations in the first six months of the year, but despite Ireland's economy being generally strong within the European Union – particularly in terms of GDP per capita which is second only to Luxembourg – none of them in Ireland, even though new incentives were introduced in Budget 2025. The global IPOs raised $61.4 billion, a 17 per cent increase in value year-on-year, according to a new report by EY. It says that while there were no new listings in Ireland, investor sentiment remains positive. 'While Ireland has not seen IPO activity so far this year, the fundamentals remain strong. Investor sentiment is holding firm, and the pipeline of potential listings is healthy,' said Fergal McAleavey, a corporate finance partner at EY Ireland. 'Continued market stability will be key to unlocking that potential. America is leading the way in the number of flotations, with 109 so far this year, its best first-half performance since the peak in 2021. EY's Global IPO Trends report notes that cross-border listings are at a record high in the US, with almost two-thirds coming in from foreign countries. Companies from China and Singapore are 'leading the charge'. 'The US market's appeal stems from its deep capital pools, broader investor base and strong liquidity,' the report says. 'International issuers particularly value access to investors with an appetite for profitable, growth-oriented companies.' Europe, by contrast, experienced a notable slowdown in IPOs, with most of the big markets pausing following the turmoil set off by US president Donald Trump's announcement of reciprocal tariffs in April. The continent recorded just 50 IPOs, a 15 per cent drop year-on-year. Sweden was the only exception, with the Asker Health Group's IPO valuing at about 2.3 billion euros. China accounted for one in three of the global IPOs by value, surpassing the US in that category. India was the second most popular, with 108. The Irish Government introduced two measures in Budget 2025 to encourage investment, including a corporation tax deduction for expenditure incurred in listing shares of a company on any stock in the European Economic Area. McAleavey said this would be a 'nice benefit' for anyone who had decided to list, but not enough on its own to persuade them to do so. He said the attraction of the US, over Europe (which includes Ireland) was in its high level of liquidity, helped by a strong retail market, which resulted in companies being valued fairly. He pointed out that Irish companies can now raise hundreds of millions from private equity funds, which has made that route more attractive. A spokesman for Euronext, which runs the Irish stock exchange, said the introduction of a tax relief for IPO expenses was a welcome development, especially for smaller companies that would be the target for its new 'Access' market. 'Given market conditions, although we have a pipeline of potential IPO candidates, IPO activity is muted globally but we expect to see some activity when market conditions improve,' he said. Euronext has put forward a number of proposals for this year's budget, including a stamp duty exemption on the trading of shares in companies with a market valuation of less than one billion euros, and to increase the life-time limit for the Capital Gains Tax (CGT) entrepreneur relief by a further one million euros to two million euros. It is also proposing the creation of an incentivised savings and investment account scheme for Ireland, and an Irish Equity Market Growth Fund to provide equity finance to companies listed or intending to list, on Irish markets. (The writer is our foreign correspondent based in the UK)
RTÉ News
28-04-2025
- Business
- RTÉ News
Global IPOs climb despite uncertainty on financial markets
Despite challenging circumstances global IPO markets showed resilience in the first quarter of 2025, with an increase in both deal volume and value globally. The latest EY Global IPO Trends Report shows that a total of 291 IPOs raised $29.3 billion 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%. But the global market also saw uncertainty in the first three months of the year, with significant and volatile geopolitical shifts as well as the rise of disruptive artificial intelligence models impacting broader financial markets and new listings. Today's figures show that the number of IPOs in the Americas increased by 51% in the first quarter of this year compared to the same time last year as positive market conditions at the start of the year facilitated the transition to the public markets. In the US, EY noted that 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 Europe, Middle East, India and Africa EY said that 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. But it added that 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 $9.5 billion, a year on year decline of 9% and 4%, respectively. EY also noted that 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. Meanwhile, 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, said that 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. He said that 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," he added. On Ireland, McAleavey noted that 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," he added.
Irish Times
28-04-2025
- Business
- Irish Times
Rate cuts may spur Irish stock market launches
Continued interest rate cuts could spur Irish companies to float on the stock market, experts say. The number of companies launching on global stock markets for the first time grew by 20 per cent to 291 in the first three months of the year, a report published on Monday shows. However, Fergal McAleavey, corporate finance partner with accountants EY , the report's publishers, says activity in the Republic is more subdued. Companies here more generally raise private capital from investors or to allow shareholders in businesses to cash out, he notes. 'While the immediate landscape appears quite unsettled, continued interest rates cuts by the European Central Bank , together with more market stability in Europe could spur activity here in the domestic market,' he says. READ MORE The European Central Bank is widely expected to cut rates further this year after reducing them by a quarter of a percentage point this month. Interest rate cuts are generally regarded as good for stock markets as they encourage investors to seek assets that give higher returns than cash. However, indications are that the Irish Stock Exchange continues to face defections. Just weeks ago, Dalata Hotel Group said it had hired financial adviser Rothschild & Co to work on a review of its options to raise capital and boost value for shareholders. The same firm is advising titanium miner Kenmare on the bid by its former managing director Michael Carvill and private equity investor Oryx Global Partners to buy that listed company. These moves could end with both companies reverting to private status and leaving the Irish Stock Exchange. The Dublin market has suffered several high-profile departures in recent years. Paddy Power owner Flutter Entertainment, packaging giant Smurfit Westrock and building materials behemoth CRH all decamped to the New York Stock Exchange. Flutter and CRH said their moves reflected a focus on their US markets, and the fact that Wall Street lures huge amounts of capital, making it attractive for large companies. However, turmoil sparked by US president Donald Trump's tariffs and trade policies have increased fear that investors there may rein in activity. Mr McAleavey notes that the volatility had prompted a number of high-profile companies to shelve stock market launches. The Irish Stock Exchange, now called Euronext Dublin , is working to establish a Euronext Access market in Dublin, similar to ones operated by the wider Euronext Group in Paris, Brussels and Lisbon. It is anticipated that the 'springboard' market for small companies will be launched by the middle of this year, as the exchange seeks to reboot listings.
