Pedro Stanton
LONDON, Dec. 17, 2024 – The global IPO scene exhibited a mild setback, recording a 10% decline in volume and a 4% dip in total proceeds compared to last year. Nevertheless, the closing months of 2024 delivered a stronger showing, as seen in the EY Global IPO Trends 2024 report.
A remarkable shift occurred with India climbing to the top spot in terms of IPO volume, achieving a listing tally that nearly doubled that of the US. Conversely, the US reaffirmed itself as the unrivaled leader in IPO proceeds—a feat last achieved in 2021—drawing significant interest from global investors by reaching extraordinary market valuations. Notably, more than half of US public offerings in 2024 were from international issuers.
Meanwhile, stricter regulations in China paved the way for a historic low in its IPO activity, marking its weakest performance in a decade. Australia also faced significant challenges, with IPO volumes plummeting to their lowest in over 20 years. In contrast, Malaysia’s IPO market flourished to a 19-year high.
Private equity (PE) and venture capital (VC) firms were pivotal, contributing 46% to global IPO proceeds. Of the 20 mega IPOs this year, 12 were PE-backed, showcasing a substantial rise from merely two in the previous year. Emerging from 2023’s count of three, 18 unicorns went public in 2024, underscoring VC firms’ growing influence.
Discerning the technology, media, telecommunications, industrials, and consumer sectors’ dominance reveals their collective command of 60% of the IPO market in both volume and proceeds, reinforcing their appeal to investors worldwide. As global dynamics continue to evolve, the trajectory for IPOs in 2025 remains robustly optimistic.
Global IPO Market Analysis: Key Trends and Predictions for 2025
The IPO landscape in 2024 experienced notable shifts, revealing trends and insights that could shape the market in the upcoming year. Despite an overall decline in IPO volume by 10% and a 4% drop in total proceeds, the latter part of 2024 demonstrated potential for recovery, as highlighted in the EY Global IPO Trends 2024 report.
India’s Ascendancy in IPO Volume
A significant highlight of 2024 was India’s rise to the forefront of global IPO volume. The number of listings in India nearly doubled compared to the United States, marking a critical shift in the IPO landscape. This surge underscores India’s growing role as a key player in the global market, driven by a burgeoning domestic economy and increased investor confidence.
United States: Leader in IPO Proceeds
While India led in IPO volume, the United States remained the top leader in IPO proceeds. This success echoed the U.S.’s performance from 2021, as the country attracted substantial global investor interest with high market valuations. Over 50% of U.S. public offerings in 2024 were from international issuers, indicating a diverse and dynamic market.
Challenges and Opportunities in Asia-Pacific
The Asia-Pacific region presented a mixed bag of results. China’s IPO market encountered significant challenges due to stricter regulations, resulting in its weakest performance in a decade. Meanwhile, Australia faced its own hurdles, with IPO volumes reaching a 20-year low. In stark contrast, Malaysia’s IPO market thrived, achieving a 19-year high, illustrating the region’s varied performance.
Role of Private Equity and Venture Capital
Private equity (PE) and venture capital (VC) firms played an instrumental role in shaping the IPO market in 2024, contributing to 46% of global IPO proceeds. Of the 20 mega IPOs this year, 12 were backed by PE, a notable increase from the previous year’s two. Additionally, the number of unicorns going public surged to 18 from just three in 2023, highlighting VC firms’ increasing influence.
Dominant Sectors and Investor Interests
Several sectors continue to dominate the IPO market, including technology, media, telecommunications, industrials, and consumer industries. Together, these sectors account for 60% of both IPO volume and proceeds, maintaining their strong appeal to investors globally.
Looking Ahead: 2025 Predictions
As we look to 2025, the IPO trajectory remains promising. With countries like India at the forefront of IPO volume and the United States leading in proceeds, global investors are optimistic about continued growth and opportunities. The evolving regulatory landscapes in markets such as China and the resilience of other Asia-Pacific economies will also play crucial roles in shaping the year ahead.
For further insights into current IPO trends and reports, visit EY.
