EMEIA Maintains Position as No1 Global IPO Market amid elevated uncertainty and market volatility

• Europe and EMEIA retain No1 IPO market position globally by volume and value in 2024, driven by large market debuts such as Gladerma and CVC Partners
• EMEIA IPOs up 36% and deal value up 45% in first three quarters of 2024 compared to 2023
• Interest rate cuts, normalising inflation and geopolitical certainty may drive increased IPO activity into 2025

Dublin, 08 November 2024: Europe and EMEIA (the Middle East, India, and Africa) has maintained its position as the leading IPO market globally in the first three quarters of 2024 by both volume and value according to the latest EY Global IPO Trends report, as strong market debuts, positive monetary and inflation environment and growing investor interest combined in what remains a challenging market globally for IPOs.

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% to $30.3 billion compared to the same period last year. EMEIA also recorded 394 deals in the first three quarters of 2024, up 36% on the same period in 2023. In spite of the positive performance in both EMEIA and the Americas markets, globally IPOs are down 11% by volume and 23% by value compared to the same period in 2023 as negative sentiment in Asia weighs on the overall market.

The remainder of 2024 and into 2025 is expected to see the IPO market influenced by central bank policies, geopolitical developments and the impact of election outcomes. Optimism is being fueled by lower interest rates and easing inflation, which are likely to encourage new listings and a resurgence in sectors sensitive to borrowing costs. Strong performance in key markets such as the US, Europe and India is expected to support IPO activity. Cross-border listings should continue to thrive, and significant public debuts, especially those backed by PE firms and from spin-offs and carve-outs, are anticipated as they seek favorable public entry points.

Fergal McAleavey, EY Ireland Corporate Finance Partner, says:

“The continued resurgence of IPO activity in Europe and the wider EMEIA region is very positive after several challenging years. For the first three quarters of 2024, EMEIA has outpaced both Asia and the Americas by both IPO volume and value, something which would not have seemed realistic even 12 months ago. This has been driven by improved market conditions, falling interest rates and inflation, strong pricing and a number of very strong candidates coming to the market, such as the listing of dermatological products company Gladerma (currently valued at €18 billion), Private Equity and credit manager CVC Partners (currently valued at €22 billion) and Polish convenience store Zabka (currently valued at €5.3 billion).

While globally IPO activity remains well below the highs of 2021, as we look forward to the end of 2024 and into 2025 conditions are looking more positive. Central banks are in an interest rate reduction mode, as it appears inflation is under control. The leading stock markets such as Nasdaq, NYSE, S&P 500 and FTSE 100 are all at all-time highs. These factors coupled with increased consumer confidence, the major electoral cycles now completed, and a backlog of PE and VC portfolio companies should lead to a significant upswing in IPOs globally.

In Ireland, the Government’s recent budget introduced tax relief of up to €1 million on expenses relating to an IPO from next year, which should hopefully encourage more companies to consider an IPO in Ireland. Importantly, however, there are very significant levels of available ‘dry powder’ from the private markets (private equity, venture capital and private credit) giving strong companies multiple alternative funding options for growth.”

AI companies attract investor interest

Over the past two years, more than 60 artificial intelligence (AI) companies have gone public annually, with about half turning a profit. Approximately 50 AI companies are currently in IPO registration, demonstrating sustained investor interest in AI-driven innovations.

Backlog of PE and VC exit activity

The persistently lower private equity and venture capital (PE and VC) exit activity over recent years has created a growing backlog of portfolio companies poised for monetization. A resurgence in PE-backed mega IPOs and VC-backed unicorns is taking shape, as current valuation levels become more favourable for launching mature, high-value portfolio companies into the public market. In the first nine months of 2024, PE and VC-backed IPOs made up six of the top 10 global IPOs, accounting for over one-third of the total global IPO proceeds. In the Americas, these IPOs accounted for 52% of the total proceeds, underscoring a greater willingness among PE and VC firms to exit in the current IPO landscape.

Cross-border listings have also seen a significant 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% YOY increase. Since 2023, foreign-domiciled issuers have represented approximately 52% of IPOs on US exchanges, reaching a 20-year high. Concurrently, with a contrasting stock market performance between the US and China this year, the market value gap between the two countries has reached a record high in Q3.

Americas and EMEIA rally as Asia-Pacific stabilizes

Year-to-date (YTD), the Americas and EMEIA have shown double-digit growth by both deal number and proceeds compared to the same period last year, despite a global reduction in public offerings owing to the Asia-Pacific’s IPO pause in the first half of the year. The US and India have notably maintained high levels of IPO activity, even during a typically quieter quarter. India launched more than 100 IPOs in Q3, marking its highest level of public offerings in a single quarter in over two decades.

Asia-Pacific has made a notable turnaround in the third quarter. By overcoming earlier declines, the region has contributed to an 11% QOQ increase in global IPO numbers. This rebound, marked by increased activity in mainland China, Indonesia, Malaysia and South Korea, has injected confidence into the global market during a period of heightened uncertainty.

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About the data

The data presented here is available on ey.com/ipo/trends. Q3 2024 refers to the third quarter of 2024 and covers completed IPOs from 1 July to 16 September 2024, plus expected IPOs by 30 September 2024 (forecasted as of 16 September 2024). Q3 2023 refers to the third quarter of 2023 and covers completed IPOs from 1 July to 30 September 2023. Q1-Q3 2024 refers to the first nine months of 2024 and covers completed IPOs from 1 January 2024 to 16 September 2024, plus expected IPOs by 30 September 2024 (forecasted as of 16 September 2024). Q1-Q3 2023 refers to the first nine months of 2023 and covers completed IPOs from 1 January 2023 to 30 September 2023. All data contained in this document is sourced from Dealogic, S&P Capital IQ, Mergermarket, Oxford Economics, Refinitiv, Pitchbook 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.