DBT Bureau
Pune, 18 Dec 2024
- In 2024, global IPO volumes fell 10%, with proceeds down by 4% YOY
- India led in volume and the US led in proceeds
- Chinese mainland experienced its lowest IPO activity in a decade
The global IPO market saw 1,215 deals in 2024, generating US$121.2 billion in proceeds, slightly trailing the levels achieved in 2023. The second half of the year showed stronger performance compared to the first half, with the fourth quarter surpassing the three preceding quarters. These insights are part of the EY Global IPO Trends 2024 report.
India, for the first time, has risen to the number one position globally in IPO volume, listing nearly twice as many IPOs as the US and two-and-a-half times as many as Europe. Meanwhile, the US reclaimed the top spot globally for IPO proceeds for the first time since the 2021 peak, continuing to stand out as the most dynamic and attractive market for global investors. The US stock market’s valuation also reached unprecedented levels, outpacing all other markets. In addition, a historic high of 55% of US public listings in 2024 were foreign issuers. Tightened regulations in the Chinese mainland contributed to its weakest IPO performance in a decade by number. Australia faced its sharpest decline in volume in more than 20 years. Malaysia achieved a 19-year record high for the number of IPOs, fueled by increased interest in its valuation and liquidity.
In 2024, public listings of private equity- (PE) and venture capital- (VC) backed portfolio companies generated 46% of total global IPO proceeds, highlighting their substantial contribution to global IPO activity and reinforcing the critical role of PE and VC firms in shaping the IPO landscape. Out of the 20 mega IPOs in 2024, 12 were PE-backed, a significant increase from the two listed last year. There were also 18 unicorn IPOs listed in 2024, half of which were launched by VC firms, up from just three in 2023.
Technology, media and telecommunications (TMT), industrials and consumer sectors dominated global IPOs, with an approximately combined 60% share across all sectors by both number and proceeds.
Cross-border listings continued to increase in 2024 with a total of 113 listings compared with 83 in 2023. The US remained the leading destination for IPOs, while mid-to-large cap deals demonstrated a solid after-market performance.
2024 regional performance
EMEIA emerged as the leader in both volume and proceeds among the regions, with 522 deals raising US$53.2b. The region contributed six of the top 10 largest public offerings, with three of them PE-/VC-backed.
The Americas saw a strong recovery, reaching its highest IPO activity since 2021, in both volume and proceeds, with 205 IPOs raising US$33.1b.
IPO activity in the Asia-Pacific region continued its downward trajectory that began in 2021, declining 35% in deals and 51% in proceeds year-over-year (YOY), although the second half of the year had a greater performance compared with the first half.
AI companies continue to attract investors; crypto-focused firms gain momentum
There are currently more than 600 artificial intelligence (AI) and AI-related public companies and nearly half of them have gone public in the past four years, many with VC backing, demonstrating how IPOs can help overcome funding challenges while driving innovation and growth.
Approximately, 60 AI companies are currently in the process of IPO registration, with more than 400 in the pipeline, indicating continued investor interest and VC support in AI-driven innovations. If the AI vertical establishes a benchmark in successful IPOs, it could encourage other high-growth verticals to pursue IPOs, fueling broader market momentum in future years.
The approval of Bitcoin and Ethereum exchange-traded funds (ETFs) in the US this year has enhanced the legitimacy of digital assets, which provides greater access for institutional investors and improved market liquidity, potentially driving a wave of IPO filings from crypto-focused firms. The success of these IPOs, however, also hinges on navigating regulatory challenges and showcasing robust compliance structures.
Impact on IPOs post US election
Historically, IPO activity has typically risen in the years following the US presidential elections, regardless of which party controls the majority. There’s usually a certain amount of uncertainty in the lead-up to an election, but, post-election, there is generally greater clarity in terms of policy direction and economic initiatives. This tends to stabilize market sentiment, creating a more favorable environment for IPOs. First-movers in a post-election year tend to include industrials, TMT and financials. However, nearly all sectors experience growth.
2025 outlook and beyond
Megatrends, including shifting fiscal and monetary policies, geopolitical tensions and global supply chain, AI and digital transformation, new environmental, social and governance (ESG) priorities and the influence of the new US administration are reshaping the global IPO market. Despite these transformative forces, the IPO market remains on track for a strong performance in 2025, supported by a cautiously optimistic economic environment, increasingly favorable monetary policies and heightened liquidity and valuation levels.
Simultaneously, the traditional global IPO market is evolving into interconnected, yet distinct regional ecosystems with their own sector specializations and growth drivers. The success of each sector is increasingly influenced by the economic conditions of its local market and the strategic priorities of the region.
George Chan, EY Global IPO Leader, says:
“Business transformation requires funding, and an IPO offers a powerful avenue to raise the capital needed to drive growth and innovation. After a period of slower activity, the global IPO market is regaining its momentum, supported by more favorable market conditions.
The outlook for 2025 appears increasingly optimistic, with a strong pipeline of companies across sectors looking to capture the opportunities presented by this renewed market strength.”
