Global IPO Markets Show Resilience in 2024
The global Initial Public Offering (IPO) markets demonstrated notable resilience in 2024, rebounding from the challenges faced in the previous year. As high interest rates that had previously disrupted major markets began to ease, IPO proceeds increased, reflecting a renewed investor confidence and a more favorable economic backdrop. After a challenging 2023, where global IPO proceeds plummeted to US$120.13 billion, the market saw a five percent increase in 2024, reaching US$126.10 billion, while the number of deals remained stable at 1,340 IPOs.
Regional Trends Drive Market Dynamics
The gains observed in 2024 were largely influenced by distinct regional trends rather than a singular global narrative. Certain IPO hubs experienced robust activity, driving the overall market performance. As we look ahead to 2025, these regional trends are expected to continue shaping IPO activity, with investors increasingly basing their decisions on domestic growth drivers and sector strengths.
The positive momentum from 2024 has carried into the early months of 2025, with January figures indicating a promising start. The global IPO count rose from 102 in January 2024 to 117 in January 2025, while the total deal value surged from US$6.86 billion to US$9.81 billion. This early uptick suggests that the IPO landscape is poised for further growth.
Notable Listings and Sector Highlights
Several high-profile listings marked the beginning of 2025, showcasing the diversity of sectors attracting investor interest. In the United States, liquefied natural gas exporter Venture Global raised US$1.75 billion, while Chinese bubble tea maker Mixue secured US$444 million in Hong Kong. In Amsterdam, luxury logistics company Ferrari Group made a strong debut with a market capitalization of US$818 million. Additionally, Asyad Shipping, a subsidiary of the Asyad Group in Oman, raised US$332.8 million in March, highlighting the global reach of IPO activity.
India and the Middle East: Rising Stars
Among the standout performers in 2024 were India and the Middle East, both emerging as strong IPO hubs. India solidified its position as the most active IPO market globally, generating more new listings than any other jurisdiction. The Indian market saw IPO proceeds nearly triple to US$20.99 billion, driven by strong growth fundamentals and increasing retail investment. The successful IPOs of major players like Hyundai’s Indian division and food delivery giant Swiggy underscored the market’s capacity to support large-scale listings, paving the way for continued success in 2025.
The listing of Hyundai’s India business was particularly noteworthy, marking the second-largest IPO globally and the largest-ever in India. This development illustrates the growing depth and liquidity of Indian stock markets, which can now accommodate substantial IPOs that would have previously sought international listings.
In the Middle East, IPO proceeds surged by over 20 percent to US$13.42 billion, buoyed by a strong pipeline of state-backed listings and significant private sector IPOs. The emergence of companies like Talabat and Lulu Retail highlights the maturation of stock markets in the region, particularly in the United Arab Emirates, Saudi Arabia, and Oman. Increased interest from international investors, as evidenced by the Asyad Shipping IPO, further underscores the region’s attractiveness for capital.
The US Market: A Positive Outlook
In the United States, IPO proceeds climbed nearly 75 percent year-on-year to reach US$41.36 billion in 2024. While this figure remains below pre-pandemic averages, the improvement signals a positive trajectory for 2025. The US IPO pipeline is expected to benefit from the strong post-market performance of companies that listed in 2024, fostering greater investor confidence in backing new IPOs.
Moreover, private equity firms are anticipated to seek exits from portfolio companies they have held for extended periods, potentially leading to an uptick in IPO activity. The new US administration’s expected loosening of regulations and focus on sectors like cryptocurrency is also viewed favorably for the IPO landscape, despite mixed signals stemming from trade tariffs.
European Markets: Encouraging Gains Amid Challenges
European stock markets also experienced a resurgence, with IPO proceeds more than doubling from US$7.79 billion in 2023 to US$16.63 billion in 2024. This growth was supported by cooling inflation and interest rate cuts, which facilitated capital formation across the region. However, challenges remain, particularly in Germany and France, where political uncertainty has impacted market sentiment.
Despite these headwinds, several large private equity-backed IPOs, such as Galderma in Switzerland and CVC in Amsterdam, have contributed to the overall gains in European stock exchanges. The promising pipeline for 2025, with companies like Stada Arzneimittel and Odido considering listings, suggests that Europe remains a viable market for IPO activity.
Challenges in China and Latin America
Conversely, IPO markets in China and Latin America faced significant challenges in 2024. In China, a liquidity squeeze in the real estate sector hindered new listings, while Brazil’s lack of activity weighed on the overall regional numbers. However, there are hopes for a revival in IPO activity, particularly in Hong Kong, where companies from mainland exchanges may seek to access international capital.
Latin America presents a mixed picture, with some jurisdictions like Argentina showing promise due to recent economic reforms that have improved local stock markets. As the region navigates its challenges, opportunities may arise for savvy investors.
Conclusion: A Promising Future for Global IPOs
As we move into 2025, the global IPO markets are well-positioned to build on the gains made in 2024. Regional drivers will continue to play a crucial role in shaping IPO activity, with distinct trends emerging from various jurisdictions. The resilience demonstrated in 2024, coupled with a favorable economic backdrop, suggests that the IPO landscape will remain dynamic and full of potential in the coming year. Investors and companies alike will be watching closely as new opportunities unfold in this evolving market.