While the international IPO market has shown notable signs of revival, the high expectations set by investment bankers for 2024 have yet to materialize.
Globally, the unmet expectations of investment bankers are evident in EY's data on first-half IPOs. The market notably slumped in Asia, while business in Europe and the US remained steady. The focus of global IPO activity has shifted, according to reports.
In the first half, 551 companies went public worldwide, marking a 12 percent decline compared to the same period last year. The total issuance volume contracted by 16 percent, totaling $52.2 billion.
The second quarter also saw downward trends. The number of IPOs decreased by 15 percent to 271, and the issuance volume plummeted by 31 percent to $27.8 billion.
Decline in China
Uncertainty in China contributed significantly to the downturn. The number of IPOs in the People's Republic fell by 64 percent to 74, with the issuance volume shrinking sharply to just $6.3 billion, an 81 percent drop.
Traditionally a leader in the global IPO market, Asia's market share in the second quarter decreased to 39 from 60 percent the previous year.
Europe and US Setting the Pace
Europe and the US showed a stronger performance for the first half. In Europe, there was a 10 percent growth with 69 IPOs, and the issuance volume of $15.2 billion nearly tripled year-on-year.
Similarly, the US market saw a 27 percent increase in IPOs to 80 and a 75 percent rise in issuance volume to $17.8 billion.
By sector, technology and health/life sciences were the most active, highlighting ongoing trends. The largest IPO in the second quarter was Puig Brands from Spain, raising over $2.9 billion. Five of the top 10 global IPOs were from Europe.
Remaining Optimistic
«Following the first half of the year, based on global inflation trends and central bank interest rate decisions, we remain optimistic about further IPOs in the coming months,» says IPO expert Tobias Meyer from EY.
