#USA #New York #Asia-Pacific #IPO #EMEIA

Overview of 2024 Global IPO Market

The global IPO market for 2024 has concluded with notable trends and diverse performances across regions. A total of 1,215 deals were registered, generating proceeds of US$121.2 billion, marking a slight decline compared to 2023. However, the second half of the year saw a resurgence in activity, particularly in the last quarter, which outperformed earlier quarters.

Regional Performance Highlights

1. Americas and EMEIA

In the Americas, there was a significant recovery as the IPO market hit its peak since 2021, achieving 205 IPOs that brought in US$33.1 billion. The EMEIA region led in both the number of listings and proceeds, showcasing 522 deals that raised US$53.2 billion. This region also boasted six of the top ten largest public offerings, with a noteworthy number being backed by private equity or venture capital.

2. Asia-Pacific Decline

Conversely, the Asia-Pacific region faced a challenging year, reflecting a 35% decline in deals and a 51% drop in proceeds year-over-year. Notably, the Chinese mainland registered its lowest IPO activity in a decade, largely attributed to tighter regulations. Australia too faced difficulties, experiencing its sharpest volume drop in over 20 years.

Sector Insights

Across various sectors, technology, media, telecommunications, industrials, and consumer sectors dominated the IPO landscape. These sectors contributed to nearly 60% of the total proceeds and number of deals. Artificial Intelligence (AI) companies, in particular, attracted significant interest, with around 600 public AI-related firms, nearly half of which went public recently. An estimated 60 AI companies are currently in the IPO registration stage, indicating sustained investor enthusiasm.

Venture capital and private equity involvement was crucial as they accounted for 46% of total global IPO proceeds, highlighting their role in the IPO ecosystem. A record number of mega IPOs, predominantly backed by these entities, emerged this year, including 12 out of 20 significant listings. Furthermore, 18 unicorns entered the market, with 50% backed by venture capitals, a marked increase compared to the previous year.

Future Outlook: 2025 and Beyond

Looking ahead to 2025, the IPO market is poised for a strong performance bolstered by favorable economic conditions, heightened liquidity, and evolving market dynamics. Historical trends suggest that IPO activities gain momentum post-US elections, as more predictable policies tend to stabilize investor sentiment. Various sectors are expected to thrive in this revitalized context, with industrials, TMT, and financials likely to lead the charge.

Innovation in Focus

Internationally, the demand for IPOs is also mirrored in the growing legitimacy of crypto-focused firms following the approval of Bitcoin and Ethereum exchange-traded funds (ETFs) in the US. This newfound confidence could stimulate a wave of IPO filings in the digital asset sector, provided they adeptly navigate regulatory landscapes.

Conclusion

As businesses look for avenues to drive growth and innovation, IPOs remain a powerful channel for raising capital. The global IPO market is witnessing a sustained revival, driven by favorable conditions and a robust pipeline of companies prepared to seize the new market opportunities. The insights provided here underscore the evolving landscape of IPOs, indicative of shifting fiscal policies, global supply chain disruptions, and an energizing focus on sectors like AI and digital transformation.

George Chan, EY Global IPO Leader, sums it up: “Business transformation requires funding, and an IPO offers a powerful avenue to raise capital needed for growth and innovation. The outlook for 2025 is increasingly promising.”