S&P Global Market Intelligence Reports Surge in Global Equity Issuance in Q4 2024

The financial landscape observed a significant turnaround in global equity issuance in the fourth quarter of 2024, as reported by S&P Global Market Intelligence. The latest quarterly report indicates that IPO transactions increased by more than 3.0% from the previous quarter, with the total amount of funds raised surging nearly 56.0% to $116.35 billion. This impressive figure marks the highest quarterly volume seen since 2021, suggesting a potential revival in the equity markets following a period of uncertainty.

Despite the upward trend in Q4, the annual statistics reveal a different narrative. Year-on-year comparisons show that while the fourth quarter's equity issuance exceeded recent performances, global IPO transactions saw a decrease compared to the numbers recorded in 2023. Nonetheless, it is noteworthy that the volume achieved this quarter stands as the most substantial since 2021, indicating a hopeful trajectory for the equity markets in the near future.

Furthermore, the total announced value of mergers and acquisitions (MA) transactions, in conjunction with the number of deals completed, experienced a year-on-year increase in 2024. This end to a two-year decline signals a resurgence in corporate decision-making and strategic investments. However, it is essential to note that while the activity in the equity space is on the rise, both the total value of MA transactions and the number of deals still remain below historical averages, suggesting caution as the market recalibrates.

The total value of MA transactions in Q4 2024 was recorded at $613.33 billion, reflecting a downturn of 13.6% when compared to 2023, and a 15.5% decline from the previous quarter. Analysts attribute much of this decline to reduced activity in the United States, which remains a crucial market for equity offerings globally.

When examining the aggregate value raised in global equity issuance between 2022 and 2024, the overall amount reached $1.039 trillion. This figure narrowly falls short of the $1.043 trillion raised in 2021, indicating that while recovery is underway, the market is still working to reclaim its lost ground from the highs experienced earlier.

Reflecting on the findings, Joe Mantone, the report's lead author, remarked, "While the improvement seen in 2024 points to a possible increase in deal-making, both MA and equity issuance levels are still considerably lower than historical trends. The outlook for 2025 appears promising, as anticipated strategic investments and supportive economic policies could pave the way for ongoing growth in global MA and equity offerings."

The Q4 2024 Global MA and Equity Offerings Report delivers in-depth analysis of emerging trends within the equity markets, identifying sectors and regions that are exhibiting notable activity. Notably, it emphasizes high-valuation deals and the strategies employed by larger market players, elucidating trends that are transpiring across various industries.

S&P Global Market Intelligence has consistently produced quarterly reports concerning global MA and equity offerings since the inception of this initiative in the first quarter of 2018. This long-standing commitment to transparency ensures stakeholders have access to crucial market insights, empowering them to make informed decisions.

For those seeking more information, copies of the Q4 2024 Global MA Equity Offerings Report are available upon request. As S&P Global Market Intelligence continues to monitor and analyze market conditions, their insights will remain essential for navigating the complex terrain of global financial markets.

Topics Financial Services & Investing)

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