The global initial public offering (IPO) market recorded 1,215 deals, accumulating $121.2 billion in proceeds for 2024, but fell slightly behind 2023 levels, a news release said. The second half of 2024 had a stronger performance compared with the first half, with the fourth quarter outperforming the three preceding quarters.
The global IPO market outlook, detailed in EY’s Global IPO Trends 2024 report, showed India leading in volume. According to the release, India has risen to the No. 1 position globally for the first time, listing nearly twice as many IPOs as the US and 2½ times as many as Europe — with 327 new listings, according to the report.
The US reclaimed the top spot 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 release said.
One trend identified as a catalyst for a resurgence in IPO activity was increased market stability, following improving macroeconomic factors and strong investor sentiment.
“As inflationary pressures ease, interest rates decline, and a global election cycle provides more clarity on policy outlooks, investors have shown increasing willingness to allocate capital toward IPOs,” the report said. “Throughout most of 2024, IPO returns have consistently outperformed or aligned with benchmark index returns across most major markets, signalling robust investor confidence in newly listed companies.”
Some regions have yet to experience a revival, with a confluence of economic, political, and geopolitical uncertainty driving the Asia-Pacific region to an 11-year low in the IPO market, the report said, as current regulations in China continue to curb opportunities for more domestic activity.
However, Asia-Pacific is projected to rebound in 2025 as economic recovery, targeted policy support, and increased foreign investment are expected to strengthen further this year, the report said.
The industrials and consumer sectors and the technology, media, and telecommunications (TMT) industry dominated global IPOs in 2024, with a combined share of about 60% across all sectors by number and proceeds, the release said.
More than half of IPOs are expected to come from TMT, industrials, and health and life sciences in 2025, the report noted, as optimism fuels momentum in 2025.
“Looking ahead to 2025, optimism is building for an acceleration in the ongoing recovery of IPO activity,” the report said. “The convergence of multiple factors, including robust equity valuations, low volatility, and declining interest rates, are creating excitement for IPO hopefuls.”
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