23 IPOs in Korea in Q1, Up 64%
"Timing Becomes More Crucial"
According to recent analysis, uncertainty in the global IPO (Initial Public Offering) market is increasing due to the expansion of geopolitical risks and the rapid rise of artificial intelligence (AI) technology.
On April 22, EY Korea, a global accounting and consulting firm, released the 'EY Global IPO Trends Report for Q1 2025.' According to the report, a total of 291 IPOs were completed in the global market in the first quarter of this year, raising approximately $29.3 billion. The number of IPOs increased by 3% compared to the same period last year, maintaining a similar level, while the amount of capital raised grew by about 20%, indicating a recovery trend.
By region, the Americas raised $8.9 billion through 62 IPOs, a 51% increase in the number of deals compared to the same period last year. The United States further strengthened its leadership in the IPO market with the launch of a new administration. Notably, 58% of the companies listed in the U.S. were cross-border IPOs, highlighting the significant inflow of global capital.
The Europe, Middle East, India, and Africa (EMEIA) region completed 113 IPOs, raising $9.5 billion, representing a decrease of 9% in the number of deals and 4% in capital raised compared to the same period last year. This decline was attributed to the spread of uncertainty across Europe as a result of changes in U.S. policy. The Middle East maintained solid performance, while India saw a decrease in the number of IPOs but made its presence felt in the market by successfully completing several large-scale IPOs.
The Asia-Pacific region led the global market in both the number of IPOs and capital raised, as its recovery gained momentum. A total of 116 new listings raised $10.9 billion, an 87% increase in capital raised compared to the same period last year. Japan recorded the largest IPO globally during this quarter, and Korea, Hong Kong, and Malaysia also showed remarkable growth. In contrast, Mainland China and Oceania experienced relatively weak performance.
In Korea, a total of 23 IPOs were completed in the first quarter, a 64% increase compared to the same period last year. The amount of capital raised surged by 269% year-on-year to $1.2655 billion. Notably, LG CNS, which went public this quarter, ranked second in the Asia-Pacific region and seventh globally in terms of capital raised through IPOs. As a result, Korea ranked third globally in the number of IPOs and ninth in capital raised during the first quarter.
The report stated, "In the first quarter, the global IPO market exhibited a mix of opportunities and risks as policy changes followed the inauguration of the Trump administration's second term in the United States. Amid heightened inflation expectations, new tariff policies are fueling inflation not only in the U.S. but also globally, thereby increasing uncertainty in monetary policy." On the other hand, the report projected a vibrant outlook for the aerospace and defense sectors due to increased defense spending by various countries.
The report further noted, "AI is emerging as a new 'game changer' in the IPO market. Companies preparing for IPOs are leveraging AI to enhance market strategies, improve operational efficiency, and maximize the likelihood of IPO success throughout the preparation and execution process."
Park Jungik, Head of the Assurance Market Division at EY Korea, emphasized, "To achieve a successful IPO in this turbulent environment, companies must have solid fundamentals, thorough preparation, agility, and flexibility, and must determine the optimal timing." He added, "Especially in Korea, in response to changes such as improvements in IPO and delisting systems, companies need to focus on long-term vision and their unique corporate narratives rather than short-term performance, systematically enhancing corporate value and communicating with the market accordingly."
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