Global IPO Watch 2024

“The Top 10 IPOs of 2024 highlight a true global distribution, moving away from the usual concentrations in the US and, more recently, China and Hong Kong SAR. Although Technology has been a major driver in equity markets in the year, it is Consumer stocks that lead in IPO rankings.”

_{Stuart Newman, Global IPO Centre Leader, PwC UK}

Highlights:

Increasingly positive backdrop for equity issuance with IPO volumes continuing to normalise and a strong outlook for 2025

Increased macroeconomic stability, a continued flow of resilient economic data and base rate cuts in major Western economies have resulted in strong performance for equity markets in 2024, particularly in the US. The MSCI World index ended November up 20% year to date.
Secondary markets have also benefitted from increased stability with markets supporting a number of large follow-on transactions and sell-downs.
As sentiment towards equities grows more positive, global IPO activity, particularly in Western markets, is beginning to return to more normal levels.
The gap in valuation expectations between owners, issuers and investors has begun to close, however investors remain selective in their support for new issuers.
Looking ahead to 2025, we expect global IPO activity to further gain momentum, led by the recovery of the US IPO market. With more than 700 unicorns in the private market and a backlog of private equity exits, the pipeline of companies in the US waiting to go public looks strong for 2025.

IPOs in the US and EMEA grow, but global IPO activity declines reflecting a slowdown in China and Hong Kong SAR

As of 30 November 2024, Global IPO proceeds totalled $105.6bn, down 9% on full year activity in 2023.
The decline was largely attributed to a marked slowdown in activity in China and Hong Kong SAR where IPO proceeds fell by $39.0bn (76%) in 2024. In October 2024, a stimulus package was announced by the Chinese Government which led to a 21% gain for the Shanghai index over the course of five days, which may create a more favourable IPO climate heading into 2025.
In contrast, IPO activity in the US and Europe delivered strong performance compared to 2023 with proceeds up $12.6bn (56%) and $8.1bn (105%) respectively, notwithstanding the uncertainties of elections in the US and several major European economies.
The negative impact on total global volumes of the slowdown in China and Hong Kong SAR was further mitigated by a continued increase in issuance for India (up 152%) and strong pipeline in the Middle East.

The ten largest IPOs this year have a diverse industry and geographical mix with Technology losing its top sector spot

The top ten IPOs comprised four IPOs in Europe, three in the Middle East, and one in each of the US, Japan and India. The diverse geographical spread of these, in contrast to the US and China and Hong Kong SAR concentration in prior years, suggests that we are seeing domestic exchanges fight their corner and attract companies within their locale.
Together, the top 10 IPOs contributed to 23% of overall proceeds in 2024.
With the economic landscape stabilising and consumer confidence improving, the Consumer Discretionary sector led IPO proceeds, making up 17% ($18.3bn) of global totals.
In contrast, despite significant interest in tech and AI-related public stocks (particularly in the US with the Magnificent-7) and in the private markets, IPO activity in the Information Technology sector was more subdued globally ($10.6bn compared to $25.9bn in 2023).
The year’s diversity in sectors and listing venues highlights that investors are prioritising issuer quality and fundamentals over specific sectors.

Efforts by exchanges and regulators to streamline regulation should provide a further tailwind for IPOs

Exchanges and regulators across the world, and in particular in Europe and the UK, are focused on paring back regulation to support public markets and equity issuance.
In addition to the improving sentiment towards equities and issuance, this should provide a further tailwind for IPOs in 2025.
However, geopolitical downside risk remains which could cause a spike in volatility and reverse some of the improved macroeconomic conditions.
Prospective issuers will need to be ready for when IPO windows open as these are therefore likely to be tight. Those with an eye on 2025 would be wise to start preparing now.

2024 in review: recovery in Western equity markets

Equity markets update

Equity markets maintained on an upwards trajectory throughout much of 2024, building on gains in 2023 as the macroeconomic picture continues to stabilise.
The S&P 500 soared up 26% in the year to the end of November 2024, driven by strong performances of US tech companies.
The growth in European indices was positive, but lower than the US, with both the FTSE 100 and the Euro Stoxx 600 up 7% at the end of November 2024. Following an abnormal volatility spike in August, European indices have tapered off in the second half of the year as markets look to assess the impact of the US election and the potential for tariffs.
The UK market performed stronger towards the end of the year with investors responding well to increased political stability following the UK election.
The Shanghai Index lagged behind Western markets for the first 8 months of the year until the Chinese central bank announced a raft of stimulus measures. This led to a 5-day gain of 21%. The resulting position of the index at the end of November was 12% up compared to the start of the year.

Macroeconomic overview

Whilst forecasts for global GDP growth remain relatively flat in 2024 and 2025, there has been continued optimism on the more stable global macroeconomic outlook, with inflation trending down towards major central bank targets and a series of base rate cuts taking place in the year. Momentum for now remains positive with bank lending and industrial activity continuing to improve, particularly in the developed economies.
The recent US elections provided investors with much-needed clarity on policy direction and the optimism was evident as the S&P 500 rose over 2% to record highs the day after the election. However, certain policies, like tariffs, could present challenges going forward. IPO activity in the US will also depend heavily on continued economic stability and the Federal Reserve’s policy direction.
Whilst investors’ worries about the direction of global policies and macroeconomic conditions led to certain periods of volatility, including a spike in August, overall, the VIX index traded within a normal range providing a supportive environment for IPOs.
In the UK and Europe regulators have taken steps to simplify the listing regimes in a bid to make equity markets more attractive to companies looking to IPO and raise equity finance.

Index performance in 2024

^{Source: S&P Global Market Intelligence LLC 30 November 2024}

2024 in review: region and country IPO Performance

IPO performance by region

Global IPO proceeds have fallen by 9%, dropping from $116.2bn in 2023 to $105.6bn in 2024, with the overall number of IPOs falling from 1,044 to 876.

The Americas - IPO activity normalising

The Americas showed continued healthy signs, with IPO proceeds increasing by 57% year-on-year to $35.4bn in 2024.
This was driven solely by IPO activity in the United States where the traditional IPO market continued its gradual comeback in 2024. The US IPO proceeds raised over 50% more than in 2023 and nearly four times the amount raised in 2022. Activity was broad-based, with notable participation from sectors including technology, life sciences, consumer markets and financial services.
Total increase in IPO proceeds reflects both an increased number of IPOs (30% increase) and by an increase in the average IPO value from c.$157m to c.$188m.
The US market produced four companies with IPO proceeds of over $1bn in the year, the biggest of which was a warehouse REIT which had proceeds of $4.4bn.
The outlook for IPOs in the US is positive as continued rate cuts and a predictable policy environment would likely boost investor confidence, creating more favourable market conditions.
Companies with AI-driven business models continue to capture investor interest, especially those that position AI as a driver of long-term growth and we expect to see more tech companies coming to market in 2025.
While PwC expects activity to pick up by mid-2025, the recovery may be more measured than in previous “open window” periods, as companies wait for stability in central bank policies and broader economic conditions under the new presidential administration.

EMEA - Gradual recovery of the IPO market

The overall IPO proceeds in EMEA rose by 33% to $29.6bn, with the average IPO value rising to c.$221m, the highest of the regions. This was in part due to several large IPOs, with seven different EMEA exchanges recording IPOs with proceeds of over $1.0bn.
Europe was the most significant of the constituent parts of EMEA with IPO proceeds more than doubling in the year to $15.8bn from $7.7bn in 2023, with the average IPO value increasing YoY.
The Middle East had IPO proceeds for 2024 of $13.3bn, which reflects robust equity markets in the region. There are encouraging signs for continued activity into 2025 with over half the year’s proceeds being across October and November alone. The first week of December saw another IPO in the Middle East with proceeds of $0.5bn, showing continued momentum in the region.

Asia Pac - Activity drops, but still the largest region

The decline in Asia Pacific continued in 2024, with IPO proceeds falling 43% to $41.0bn. This is driven by a continued decline in IPO proceeds in China and Hong Kong SAR, where proceeds fell from $51.5bn in 2023 to $12.5bn in 2024. Nonetheless, Asia Pacific maintained its position as the largest region due to increases in proceeds raised in other countries, specifically India, Malaysia and South Korea.
India was the region’s bright spot, delivering a 152% increase in IPO proceeds to $16.8bn. This was driven in part by the country’s largest ever IPO, an automobile manufacturer, which raised $3.3bn.
There is some optimism for a rebound in IPO activity in China and Hong Kong SAR after the central bank announced a large package of stimulus in November 2024.