Global IPO market remains resilient amid economic pressures

Despite all kinds of challenges, the global IPO market remained resilient in the third quarter of 2024, outpacing both previous quarters in terms of IPO launches. That is according to the latest Global IPO Trends report from EY.

Navigating through a complex economic and geopolitical landscape, marked by the start of a global interest rate easing cycle, Q3's IPO activity has contended with heightened market volatility. Despite these challenges, the Americas and EMEIA demonstrated resilience in the first three quarters of 2024, with EMEIA’s IPO proceeds up by 45% compared to the same period last year, while the Americas saw a 37% jump.

Globally, the number of initial public offerings in Q3 hit 310, up on both Q2 and Q1.

EY said that private equity is playing a significant role in the rebound, in part due to a backlog of portfolio companies poised for monetization that is now being pushed to the market, as well as more favorable valuations. In the first nine months of 2024, IPOs backed by financial investors made up six of the top 10 global IPOs, accounting for over one-third of the total global IPO proceeds.

Cross-border listings have also seen a notable uptick. In the first three quarters of this year, 77 companies chose to list abroad, up from 64 in the same period last year, a 20% year-on-year increase.

Asia Pacific

While EMEIA and the Americas were the top performers by region, Asia-Pacific also enjoyed a turnaround in the third quarter. In Q3, there were 28 IPOs with proceeds totaling $1.1billion, representing a surge in proceeds of 100% from the previous quarter that saw 29 deals totaling $0.6 billion. This was primarily driven by the prominent listing of 99 Speed Mart Retail Holdings from Malaysia, which stood as the second-largest IPO in the region in 2024.

Across Asia-Pacific, other active exchanges this year include Indonesia (34 IPOs raising $300 million), Thailand (22 IPOs raising $600 million), Philippines (3 IPOs raising $200 million). Singapore and Sri Lanka each had one IPO that raised $19.5 million and $1.5 million respectively.

Commenting on the outlook for the region, Chan Yew Kiang, IPO Leader for the ASEAN region at EY, said:  “With interest rates easing and companies gearing up for growth in the region, IPO activities are expected to pick up in the next quarter and year ahead. Strong fundamentals and demands, together with regulators increasingly exploring policies to support growth companies to tap the capital markets for growth, also bodes well for the markets.”

George Chan, Global IPO Leader at EY, said that in the continued volatile environment, timing is emerging as key factor of IPO success. “In this environment of heightened uncertainty, well-timed market entries and compelling equity narratives are crucial for businesses looking to capitalize on IPO opportunities.”