IPO Watch EMEA 2024

Positive equity market performance, lower volatility, falling interest rates and inflation returning to central banks’ targets has laid the foundation for a strong IPO environment in 2025.

In 2024, EMEA IPO proceeds surpassed those of the previous year, despite a subdued IPO activity period in Q3. The decline in the third quarter was mainly due to multiple elections and regulatory changes over the summer months. However, a resurgence in IPO activity occurred in Q4 as election results settled across Europe and the effects of the US election began to influence the EMEA market. This stabilisation of the macroeconomic, political and regulatory environment has led to a more favourable outlook for IPO volumes in EMEA region heading into 2025.

Africa region recorded two IPOs during the year, collectively raising over $500m (up 60% from 2023). Noteworthy was the listing of a South African convenience store chain, which marked the largest IPO in South Africa since 2017. This IPO has demonstrated strong aftermarket performance, up 24% since IPO, showcasing investor confidence.

The Middle East experienced robust IPO activity with over 75 IPOs generating more than $13bn (down 6% from 2023). The region saw significant momentum in Q4, including the three largest IPOs of the year in the region. A standout IPO in November became the largest global technology IPO of 2024, raising $2bn on the Dubai Financial Market. The first week of December saw another IPO in the Middle East with proceeds of $0.5bn, continuing the momentum.

European IPO proceeds more than doubled in 2024 compared to previous year, driven by the return of significant private equity backed IPOs. The success of the PE-backed IPOs in 2024 is expected to lay the foundation for further PE listing activity in 2025.

European IPO markets began a gradual return to normality in 2024, supported by an improved macroeconomic backdrop, decreasing inflation, and interest rate cuts across Europe. These factors have provided a more stable environment for further IPO activity as we look ahead to 2025. Although overall post-IPO performance in Europe was mixed, some of the largest IPOs of 2024 delivered solid returns.

With global private equity assets under management at a record high of $5tn, indicating a significant backlog of maturing investments, we expect to see a more active IPO market for PE-backed assets as pressure builds to realise value and the IPO market provides a viable monetisation route.

IPO proceeds from the consumer sector represent over half of total European IPO proceeds raised in 2024, with four of the top five European IPOs in this sector.

The London equity market has shown progress in 2024 with a number of AIM to Main move-ups, several IPOs and the recent spin-off of a media company. With elections and listing reforms out of the way, there is a sense of greater stability and investor confidence as demonstrated by the recent reversal of persistent outflows from UK equities and robust secondary markets, demonstrated by large follow-on equity transactions.