- H1 2024 global IPO volumes fell 12%, with proceeds down by
16% year-on-year
- EMEIA regained the No.1 global IPO market share by
number for the first time in 16 years
- Industrials led the way in volume of IPOs with technology
raising the most capital
LONDON, June 27, 2024 /PRNewswire/ -- Globally, in the
first half (H1) of 2024 there were 551 listings raising
US$52.2b in capital, a 12% decrease
in the number of IPOs and a 16% drop in proceeds raised
year-on-year (YOY). This result is mainly due to a slowdown in
Asia-Pacific IPO activity, with the Americas and EMEIA seeing
robust growth in H1. These and other findings are available in the
EY Global IPO Trends Q2 2024 report.
Industrials took the lead in number of IPOs with 115 (21%)
listings, primarily fueled by strong activity in India. Meanwhile, the technology sector
outperformed in terms of capital raised, amassing an impressive
US$10.8b (21%) in IPO proceeds, with
the US securing more than half (52%) of these funds.
There was a leap in large private equity (PE)- and venture
capital (VC)-backed IPOs, with the proportion of IPO proceeds from
such offerings rising from just 9% in the first half of 2023 to 41%
in H1 2024. This trend was particularly pronounced in the Americas,
where 74% of the IPO proceeds were from PE- and VC-backed
companies.
Americas and EMEIA gain ground while Asia-Pacific activity continues to
slow
During H1 2024, there was a strong appetite for equity offerings
in both the Americas and EMEIA regions, buoyed by favorable stock
market performance, improving IPO valuation levels and growing
investor enthusiasm for new offerings. In the Americas, there were
86 IPOs with proceeds of US$17.8b, an
increase of 12% and 67% respectively YOY.
The EMEIA region made a remarkable comeback in H1 2024,
achieving its highest global share by number since the
2008 global financial crisis while accounting for 45% of total deal
volume and 46% of value. This impressive performance was spurred by
major European listings, indicating that more larger companies
perceive the current market condition as an optimal IPO window.
India also experienced a
significant surge, accounting for 27% (152) of global IPOs by
deal volume, up from 13% (81) in the same period last year.
The Asia-Pacific region, once a
hotbed for IPOs, has seen its market sentiment dampened by a
confluence of headwinds, including geopolitical tensions,
elections, economic slowdown, heightened interest rates and a
drought in market liquidity, which led to investor caution. The
region witnessed a prolonged slowdown in H1 2024, with a mere 216
IPOs listed and US$10.4b raised. This
lacklustre performance represents a staggering decline of 43% and
73% by volume and value YOY, respectively. It is important to
appreciate, however, that policymakers in China have set higher requirements on IPOs to
improve the strength and the scale of companies choosing to go
public.
George Chan, EY Global IPO
Leader, says:
"The global IPO market reflects the broader economic backdrop,
while seeking new balance amid geopolitical and election
complexities. As the pendulum of opportunity swings toward the
developed Western economies, the Asia-Pacific region faces headwinds that test
its tenacity. Companies contemplating IPOs need to show heightened
adaptability to make well-informed strategic decisions amid the
evolving IPO landscape."
H2 2024 IPO market outlook
According to the report, the second half of 2024 will be shaped
by key factors affecting the global IPO market – the central banks'
interest rate cut schedules, escalating geopolitical tensions and
the election super-cycle.
The report predicts that global inflation will continue to cool
amid varying economic conditions and regional inflation levels. The
central bank's easing cycle is likely to be disjointed with some
European and emerging markets leading the way, ahead of a more
hawkish US Federal Reserve (Fed). When central banks,
including the Fed, reverse their course and start to lower interest
rates, investors are expected to move their capital in search of
higher returns. This shift is anticipated to increase liquidity in
equity markets, emerging markets and growth-oriented sectors like
technology and health and life sciences.
Chan says: "Geopolitical tensions could compel businesses to
explore alternative IPO markets, avoiding high-risk regions and
seeking more favorable regulatory environments. This shift could
potentially lead to the rise of new financial hubs and alter the
IPO market landscape. Meanwhile, election-related uncertainties
impact IPO timing. Some companies could postpone offerings to
sidestep the unpredictable effects of electoral outcomes on market
stability and investor confidence, preferring to await more stable
post-election conditions."
About EY
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This news release has been issued by EYGM Limited, a member of
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About EY Private
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Private professionals possess the experience and passion to support
private businesses and their owners in unlocking the full potential
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About EY IPO services
Going public is a transformative
milestone in an organization's journey. As the industry-leading
advisor in initial public offering (IPO) services, EY teams advise
ambitious organizations around the world and helps equip them for
IPO success. EY teams serve as trusted business advisors guiding
companies from start to completion, strategically positioning
businesses to help achieve their goals over short windows of
opportunity and preparing companies for their next chapter in the
public eye: ey.com/ipo
About the data
The data presented here is available on
ey.com/ipo/trends. H1 2024 refers to the first six months of 2024
and covers completed IPOs from 1 January
2024 to 17 June 2024, plus
expected IPOs by 30 June 2024
(forecasted as of 17 June 2024). H1
2023 refers to the first six months of 2023 and covers completed
IPOs from 1 January 2023 to
30 June 2023. All data contained in
this document is sourced from Dealogic, S&P Capital IQ,
Mergermarket and EY analysis unless otherwise noted. The Dealogic
data in this report are under license by ION. ION retains and
reserves all rights in such data. SPAC data are excluded from all
data in this report, except where indicated.
CONTACT:
Olivia
Braddick
EY Global Media Relations
+44207 951 6829
olivia.braddick1@uk.ey.com
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