Stock market flotation activity surged across Europe, the Middle East, India, and Africa as well as the Americas in the first half of 2024, a new survey shows today.
The latest EY Global IPO Trends survey for the second quarter of this year said the surge in IPO activity was driven by favourable stock market performance, improving valuation levels, the continuing reduction in inflation and growing investor enthusiasm for new offerings.
The report also showed a significant increase in Private Equity and Venture Capital backed IPOs as investors seek exits at more favourable valuations.
Europe and the wider EMEIA market became the biggest global market for IPO activity for the first time since the global financial crisis in 2008.
The region hosted 249 deals worth $24 billion up 46% by volume and 89% by deal value when compared to the first half of last year.
Six of the top ten largest public offerings, five of them Private Equity-backed, originated in EMEIA.
The two largest listings in the second quarter both involved European companies - Spain's Puig Brands at $2.9 billion, and Switzerland's Galderma Group at $2.6 billion.
Un the Americas, there were 86 IPOs with proceeds of US$17.8 billion, an increase of 12% in volume and 67% in value when compared to the first half of 2023.
But the Asia Pacific region saw a significant retrenchment, however, with deal volume down 43% and deal values reducing by 73%.
Globally, there were 551 listings raising $52.2 billion in capital during the first half of the year, marking a 12% overall decrease in the number of IPOs and a 16% drop in proceeds raised year-on-year.
Fergal McAleavey, EY Ireland Corporate Finance Partner, said the the resurgence of IPO activity across Europe and the wider EMEIA region in 2024 is very positive to see after several challenging years.
"With inflation approaching 'normal' levels, interest rates falling, stock markets rallying to hit all-time highs and volatility remaining low, there is increasing confidence amongst IPO issuers and investors," Mr McAleavey said.
"We’ve seen IPO returns eclipse benchmark indexes globally for the year to date, with the average European IPO returning 17.7% while the STOXX Europe 600 returning just 6.8%," he said.
"Not only is this a testament to increased activity and strong pricing, but it also bodes well for the pipeline of future activity with a number of high-profile listings potentially due in the coming months in Europe," he stated.
"A strong IPO market with strong post listing performance is a bellwether for the broader transaction market. The positivity that this bring to the market often leads to increased valuations across both the public and private market, more deal activity and generally adds confidence for companies and investors to transact," he added.
