Global IPO activity in 2024 slowed, with fewer deals and lower proceeds. India led in volume, while the US dominated in capital raised. China saw its weakest IPO market in a decade. Economic uncertainty and regulatory challenges influenced the decline across major markets.
1. Overall IPO Performance
The global IPO market in 2024 saw a decline, with total IPOs dropping from 1,044 in 2023 to 876 in 2024. The total funds raised also fell by 9%, from $116.2 billion to $105.6 billion. Economic uncertainties and fluctuating investor sentiment played a key role in this slowdown.
2. U.S. IPO Market Shows Resilience
Despite global declines, the U.S. IPO market recorded a 38% increase in the number of listings and a 48% rise in proceeds compared to 2023. A significant portion of these IPOs came from the technology sector, including artificial intelligence (AI) and semiconductor companies.
3. India Leads Asia-Pacific in IPOs
India emerged as the strongest IPO market in the Asia-Pacific region, surpassing both China and other key markets in terms of IPO proceeds. In 2024, India raised approximately $18.4 billion through IPOs, marking a 149% increase from the previous year. The National Stock Exchange (NSE) led globally in IPO volume.
4. Europe Faces Challenges
European IPO activity struggled due to economic instability and reduced investor confidence. Many companies chose to delay their public listings or seek alternative funding routes.
5. Key IPOs to Watch
- CoreWeave (U.S.): The AI data center operator had a lukewarm market debut, pricing shares lower than expected.
- Klarna (Sweden): The fintech company filed for a U.S. IPO, aiming for a $15 billion valuation, potentially revitalizing interest in fintech listings.
6. Sectoral Trends
- Technology & AI: Dominated global IPO activity, with investors showing strong interest in AI-driven companies.
- Industrial & Logistics: Continued growth due to demand for infrastructure and automation.
- Consumer Goods & Services: Retail and e-commerce companies maintained steady investor interest.
7. Battle Between Stock Exchanges
New York’s Nasdaq and the NYSE actively competed for listings from international companies, particularly from the UK. Meanwhile, the London Stock Exchange promoted its lower listing costs to retain homegrown IPOs.
Conclusion
While IPO activity faced challenges in 2024, certain markets like India and the U.S. showed strong growth. The focus in 2025 will be on emerging technology firms, fintech, and AI-based businesses, which are expected to lead the next wave of IPOs.
