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Overall regional performance: 2023 wasn’t the year the regions thought it would be
While the number of Americas IPOs in 2023 was up 15% compared with 2022’s muted level, proceeds were up by nearly three times due to several high-profile deals. In total, 153 deals raised US$22.7b, with 132 of them on US exchanges. The region had seven deals that raised over US$500m in 2023 versus just four in 2022, but smaller-sized IPOs continued to dominate IPO activity on US exchanges. Overall, the increase in IPO volumes compared to last year sparked optimism in the market in 2023 for a broader IPO market recovery. Despite an optimistic environment, investors remain selective, calling for strong fundamentals and preparedness.
This year, 732 companies went public in Asia-Pacific raising US$69.4b, a YOY fall of 18% and 44% respectively. Facing economic and geopolitical headwinds, 2023 was challenging for Asia-Pacific’s IPO markets, with the two powerhouses of Mainland China and Hong Kong continuing to decline in volume and value. However, Mainland China remained a vital source of IPO funding, contributing over 40% of global proceeds in 2023. In the Asia-Pacific IPO market, well-capitalized companies backed by private equity and venture capital in the environmental, social and governance (ESG) and technology space can wait until valuations improve. Realistic pricing and post-IPO performance may encourage some of these companies that are prepared for IPO with strong governance and a good equity story to list in 2024.
The EMEIA IPO market is on its path to recovery, with a 7% rise in volume, even with a 39% decrease in proceeds. This is on the back of large deals from MENA, heightened activity in India and CESA as well as a few high-profile cross-border IPOs to the US. This region finished the year with 413 deals, raising US$31.1b. And, even though five of the world’s largest 10 deals were from EMEIA, the region had a greater number of smaller IPOs than large ones compared with 2022, hence the fall in total proceeds. MENA continued to dominate the top 10 EMEIA IPOs in 2023, with half of the IPOs from this geography. Overall in EMEIA, the outlook for 2024 is optimistic but cautious, given an unpredictable market environment. In various countries, governments and regulators are taking steps to stimulate capital markets to boost investment in disruptive innovation.