The number of IPOs worldwide has fallen compared to 2023 and the transaction value has declined. The slump in China is dramatic, which Ernst & Young attributes to deglobalization trends in Asia.
2024 was not an excellent year for IPOs worldwide. The number of initial public offerings (IPOs) fell by 10 percent compared to the previous year to 1215 worldwide, while the issue volume fell by 4 percent to $121 billion. This is according to the IPO Barometer published by the consulting and auditing firm Ernst & Young (EY) on Wednesday.
The regional differences are considerable, as Tobias Meyer, head of transaction accounting and IPO services EY Switzerland, observes: «While significantly more capital was invested in IPOs in Europe and the USA, activity in Asia declined considerably. Interest rate cuts by Western central banks and rising stock markets had a positive effect, while deglobalization trends in Asia weighed on the markets there».
Market in China Shrinks Sharply
The US market grew significantly. There were 183 transactions in 2024 (2023: 127), with the total volume rising from $22.2 billion to $32.7 billion. In Europe, the number of transactions fell from 148 to 125, but the issue volume rose sharply from $13.5 billion to $19.1 billion.
In China (including Hong Kong), the number of IPOs fell by more than half, from 387 to 170. The transaction value fell by 65 percent to just under 20 billion dollars. This means that China suffered the biggest setback of all relevant stock exchanges, commented EY.
Private Equity and Venture Capital Funds Account for Almost Half of the Transaction Value
In terms of sectors, technology companies continued to dominate with 211 IPOs worth over $23.6 billion, followed by companies that EY classifies as belonging to the «Advanced Manufacturing» sector with 174 IPO over $9,2 Milliarden.
And at a time when everyone is raving about private markets, this figure is interesting: 12 percent of all IPOs and 46 percent of the placement volume in 2024 were accounted for by companies from the portfolios of private equity and venture capital funds - companies, that thus switched from «private» to the public market via «Going Public».
Switzerland in 5th Place Worldwide With Galderma
In Switzerland, there was only one classic IPO, which is Galderma. Nevertheless, the Galderma IPO ranked fifth worldwide with $2.6 billion. The transactions of Lineage Inc (USA), Midea Group (China), Hyundai Motor India and Puig Brands (Spain) were even larger.
Sunrise does not count as a classic IPO. The company spun off from its parent company Liberty Global and returned to the Swiss stock exchange in November after four years with a market capitalization of $3.5 billion.
Optimistic Outlook – By Profession?
With regard to Switzerland, Meyer is «optimistic about a revival of the capital markets in 2025», due to the recent significant interest rate cut by the Swiss National Bank. However, negative interest rates, «albeit undesirable», could become an issue again in the future in the fight against the strong franc and deflation risks.
His outlook for the global markets is also positive: «The current ‹Santa Claus Rally› in many markets and the current low volatility are positive for the IPO year 2025. The announced deregulation in the US and efficiency gains through the adaptation of artificial intelligence should continue to boost the US market, while the announced trade tariffs could prove to be a burden.»
Similar to investment bankers, economic advisors also benefit from a large number of transactions and therefore tend to look to the future with a great deal of optimism by virtue of their profession.
