Global IPO markets have been hit by both volatile geopolitical shifts as well as the rise of disruptive artificial intelligence (AI) in Q1 of 2025 according to EY's latest report.

Despite the challenges, markets still managed to increase in both deal volume and value globally.

A total of 291 IPOs raised US$29.3bn 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 EY Global IPO Trends Report also found a total of 291 IPOs raised US$29.3bn 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.

However, EY said in EMEIA (Europe, Middle East, India and Africa), significant US policy shifts under Donald Trump put Europe "in the middle of significant geopolitical crosswinds and brought more uncertainty to its IPO market".

Elsewhere, 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$9.5bn, 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, said: “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 rate cuts by the ECB, together with more market stability in Europe, could spur activity here in the domestic market.”

But the report also noted 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."

It added that "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 there are positive indicators such as a robust global IPO pipeline and targeted government support to key sectors."

Finally, the report also found AI is "significantly influencing companies’ growth trajectories."

It is being used to streamline operations in the "Technology, Health and Life Sciences and Financials sectors".

But the report said breakthroughs earlier this year by AI firm Deepseek "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."

Pic: SAUL LOEB / AFP