LONDON – The European initial public offering (IPO) market has experienced a significant rebound in 2024, with proceeds more than doubling compared to the previous year, driven by improved macroeconomic conditions and decisive election results in the region.
According to PwC’s latest IPO Watch EMEA 2024 report, Europe saw 57 IPOs raise €14.6 billion, marking a €7.4 billion increase from 2023’s €7.2 billion raised from the same number of IPOs.
The UK’s IPO market has shown signs of progress despite a slight decrease in proceeds, with £0.7 billion raised from 8 IPOs, compared to £0.8 billion from 11 IPOs last year.
The London Stock Exchange (LON:LSEG) has witnessed a transition of companies from AIM to the Main exchange, and the introduction of listing reforms seems to have instilled greater stability and investor confidence. With several significant listings in the pipeline, 2025 is expected to see further growth in the UK’s IPO market.
In the Middle East, IPO activity remained robust with over 75 IPOs generating more than $13 billion, a slight decrease from the $14 billion raised in 2023. The region’s momentum was particularly strong in the fourth quarter, resulting in the three largest IPOs of the year. Africa also recorded increased IPO activity, with two IPOs raising over $500 million, a 60% rise from the previous year.
Globally, IPO proceeds totaled $105.6 billion from 876 IPOs in 2024, a 9.6% decrease from 2023. The decline was mainly due to a slowdown in China, where IPO proceeds fell by 78%. However, this was partially offset by increased issuance in India and a strong pipeline in the Middle East. The US market also reported a 56% increase in IPO proceeds despite uncertainties around the presidential election.
The consumer discretionary sector led the IPO activity by proceeds, raising $18.3 billion, followed by industrials and financials. In contrast, the information technology sector, which was the largest in 2023, saw a significant reduction in proceeds.
Vhernie Manickavasagar, Capital Markets Partner at PwC UK, highlighted the success of private equity-backed IPOs in Europe and the return of net inflows into UK equities for the first time in 42 months.
Kat Kravstov, Capital Markets Director at PwC UK, expects a further revival of the IPO market by mid-2025, contingent on continued macroeconomic improvement.
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