2024 IPO Review: Indonesia Faces Decline Amid Global Uncertainty, Eyes Recovery in 2025

• In 2024, global IPO volumes fell 10%, with proceeds down by 4% year-on-year (YOY).
• Asean’s IPO market saw deal volume decrease by 21% and proceeds drop by 38% year-on-year.
• Indonesia’s IPO activity was down 48% in terms of volume, while proceeds fell by 74%, due to the Presidential Election and ongoing global market headwinds.

JAKARTA, 30 January 2025. The global Initial Public Offering (IPO) market recorded 1,215 deals, raking in US$121.2b in proceeds for 2024, falling slightly behind 2023 levels. The second half of this year had a stronger performance compared with the first half, with the fourth quarter outperforming the three preceding quarters. These and other findings are available in the EY Global IPO Trends 2024.

India, for the first time, has risen to the number one position globally in IPO volume, listing nearly twice as many IPOs as the US and two-and-a-half times as many as Europe. Meanwhile, the US reclaimed the top spot globally for IPO proceeds for the first time since the 2021 peak, continuing to stand out as the most dynamic and attractive market for global investors. The US stock market’s valuation also reached unprecedented levels, outpacing all other markets. In addition, a historic high of 55% of US public listings in 2024 were foreign issuers. Tightened regulations in the Chinese mainland contributed to its weakest IPO performance in a decade by number. Australia faced its sharpest decline in volume in more than 20 years, while Malaysia achieved a 19-year record high for number of IPOs, fueled by increased interest to its valuation and liquidity.

In 2024, public listings of private equity (PE) and venture capital (VC) backed portfolio companies generated 46% of total global IPO proceeds, highlighting their substantial contribution to global IPO activity and reinforcing the critical role of PE and VC firms in shaping the IPO landscape. Out of the 20 mega IPOs in 2024, 12 were PE-backed, a significant increase from the two listed last year. There were also 18 unicorn IPOs listed in 2024, half of which were launched by VC firms, up from just three in 2023.

Technology, media and telecommunications (TMT), industrials and consumer sectors dominated global IPOs, with an approximately combined 60% share across all sectors by both number and proceeds.

Cross-border listings continued to increase in 2024 with a total of 113 listings compared with 83 in 2023. The US remained the leading destination for IPOs, while mid-to-large cap deals demonstrated a solid after-market performance.

Indonesia’s IPO Activity: Overcoming 2024 Challenges and Unlocking 2025

Indonesia's IPO activity in 2024 saw a notable decline, with only 40 IPOs raising IDR 10.1 trillion, a stark contrast to the 79 IPOs that raised IDR 54.1 trillion in 2023. This downturn was primarily driven by global market challenges, as investors adopted a cautious approach amid economic uncertainties. Additionally, the Indonesian presidential elections contributed to the slowdown, as potential investors delayed decisions in anticipation of clarity regarding the new administration's policies. The lack of large-scale IPOs throughout most of the year—except for Adaro (AADI) and Mr. DIY (MDIY) in December—further underscored the weakened appetite among institutional investors, which was also affected by global geopolitical and financial pressures.

Reuben Tirtawidjaja, EY Indonesia Strategy and Transactions Partner states:

“Looking ahead in 2025, investor sentiment appears cautiously optimistic. Greater clarity on government policies, continued infrastructure development, and a favorable low-interest-rate environment are expected to renew interest in IPOs.”

The Indonesia Stock Exchange (IDX) has also indicated that they are working to enhance existing requirements for prospective issuers, aiming to elevate the standards for companies seeking to list on the exchange. Anticipated policy adjustments may include an increase in the cap on free float—the percentage of shares available for public trading—and changes to the minimum years of operation required. Furthermore, the IDX has set a target of 66 IPOs for 2025, with 16 companies possessing assets exceeding IDR 250 billion and one company with assets between IDR 50 billion and IDR 250 billion currently in the IDX pipeline.

Reuben, adds:

“Infrastructure and renewable energy sectors are anticipated to drive IPO activity, alongside consumer goods companies. However, challenges such as competition from regional markets, the lingering impact of underperforming IPOs, geopolitical tensions, tariffs and immigration reforms post the US election leading to US inflationary pressures and potentially slowing the FED rate cuts. Achieving a significant rebound will depend on strategic measures to address these risks and a concerted effort to capitalize on Indonesia’s economic potential, fostering confidence and attracting robust investor participation.”

Empowering Indonesian Businesses for IPO Success in 2025

As the Indonesian companies prepare for a more favorable IPO landscape this year, EY Indonesia in partnership with the IDX, recently hosted a two-day IPO Masterclass on 22 to 23 January 2025. This event provided a learning platform for Indonesian companies exploring the path to an IPO, equipping them with the knowledge and tools necessary to navigate the IPO process as a strategic funding option. The masterclass featured in-depth discussions on the global IPO landscape, addressing key economic, geopolitical, and technological factors shaping IPO activity. 

The sessions focused on Indonesia’s IPO trends, highlighting the decline in activity in 2024 and the expected rebound in 2025, driven by regulatory reforms, infrastructure growth, and emerging opportunities in sectors like renewable energy. Practical advice was shared to help companies align with these trends and achieve successful IPO outcomes.

2024 Regional Performance

IPO activity in the Asia-Pacific region continued its downward trajectory that began in 2021, declining 35% in deals and 51% in proceeds year-over-year (YOY), although the second half of the year had a greater performance compared with the first half.

In Asean, there were a total of 129 deals (down 21% YOY) raising US$3.6b (down 38% YOY). Asean exchanges that were the most active in the year were Malaysia (49 IPOs raising US$1.7b), Indonesia (41 IPOs raising US$921m) and Thailand (31 IPOs raising US$808m). Exchanges in Singapore and the Philippines hosted four and three IPOs, raising US$31.4m and US$197m, respectively.

Chan Yew Kiang, EY ASEAN IPO Leader says:

“High inflation and elevated interest rates deterred public listings, while slower economic growth globally, together with national elections in numerous countries, have introduced uncertainties and dampened IPO activity. The absence of large IPOs added to the muted performance with average deal size dropping to a 19-year low. However, Malaysia and Indonesia continue to draw interest; Malaysia saw a near-20-year high in IPO launches while Indonesia is increasingly an attractive destination for foreign private equity and venture capital firms. In Singapore, government reforms to revitalize the stock exchange are expected to boost IPO activity. 

With interest rates easing and companies gearing up for growth across Asean, IPO activities are expected to pick up in 2025. Strong fundamentals from IPO aspirants, combined with regulators’ support toward growth companies to tap the capital markets for growth, bode well for the markets. Additionally, we can expect growing interest in cross-border listings as companies seek to achieve brand equity in other markets that they are venturing into.”

EMEIA emerged as the leader in both volume and proceeds among the regions, with 522 deals raising US$53.2b. The region contributed six of the top 10 largest public offerings, with three of them PE- or VC-backed.

The Americas saw a strong recovery, reaching its highest IPO activity since 2021, in both volume and proceeds, with 205 IPOs raising US$33.1b.

AI Companies Continue to Attract Investors; Crypto-Focused Firms Gain Momentum

There are currently more than 600 artificial intelligence (AI) and AI-related public companies and nearly half of them have gone public in the past four years, many VC-backed, demonstrating how IPOs can help overcome funding challenges while driving innovation and growth.

Approximately, 60 AI companies are currently in the process of IPO registration, with more than 400 in the pipeline, indicating continued investor interest and VC support in AI-driven innovations. If the AI vertical establishes a benchmark in successful IPOs, it could encourage other high-growth verticals to pursue IPOs, fueling broader market momentum in future years.

The approval of Bitcoin and Ethereum exchange-traded funds (ETFs) in the US this year has enhanced the legitimacy of digital assets, which provides greater access for institutional investors and improved market liquidity, potentially driving a wave of IPO filings from crypto-focused firms. The success of these IPOs, however, also hinges on navigating regulatory challenges and showcasing robust compliance structures.

2025 Outlook and Beyond

Mega trends, including shifting fiscal and monetary policies, geopolitical tensions and global supply chain, AI and digital transformation, new environmental, social and governance (ESG) priorities and the influence of the new US administration are reshaping the global IPO market. Despite these transformative forces, the IPO market remains on track for a strong performance in 2025, supported by a cautiously optimistic economic environment, increasingly favorable monetary policies and heightened liquidity and valuation levels.

Simultaneously, the traditional global IPO market is evolving into interconnected, yet distinct regional ecosystems with their own sector specializations and growth drivers. The success of each sector is increasingly influenced by the economic conditions of its local market and the strategic priorities of the region.

George Chan, EY Global IPO Leader, says: 
“Business transformation requires funding, and an IPO offers a powerful avenue to raise the capital needed to drive growth and innovation. After a period of slower activity, the global IPO market is regaining its momentum, supported by more favorable market conditions. The outlook for 2025 appears increasingly optimistic, with a strong pipeline of companies across sectors looking to capture the opportunities presented by this renewed market strength.”

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About the data

The data presented here is available on ey.com/ipo/trends

Q4 2024 refers to the fourth quarter of 2024 and covers completed IPOs from 1 October to 9 December 2024, plus expected IPOs by 31 December 2024 (forecasted as of 9 December 2024). Q4 2023 refers to the fourth quarter of 2023 and covers completed IPOs from 1 October to 31 December 2023. H1 2024 refers to the first half of 2024 and covers completed IPOs from 1 January 2024 to 30 June 2024. H2 2024 refers to the second half of 2024 and covers completed IPOs from 1 July to 9 December, plus expected IPOs by 31 December 2024 (forecasted as of 9 December 2024). 2024 refers to the full calendar year and covers completed IPOs from 1 January 2024 to 9

December 2024, plus expected IPOs by 31 December 2024 (forecasted as of 9 December 2024). 2023 refers to the full calendar year and covers completed IPOs from 1 January 2023 to 31 December 2023.

All data contained in this document is sourced from Dealogic, Mergermarket, PitchBook, S&P Capital IQ, LSEG (Refinitiv) and EY analysis unless otherwise noted. The Dealogic data in this report are under license by ION. ION retains and reserves all rights in such data. SPAC data are excluded from all data in this report, except where indicated.