LONDON – Europe’s initial public offering (IPO) market saw a significant recovery in 2024, with revenues more than doubling compared to the previous year, boosted by improved macroeconomic conditions and decisive election results in the region.
According to PwC’s latest IPO Watch EMEA 2024 report, 57 IPOs raised €14.6 billion in Europe, an increase of €7.4 billion from the €7.2 billion raised from the same number of IPOs in 2023 . year.
The UK IPO market showed signs of progress despite a slight decrease in revenue, with £0.7bn raised from 8 IPOs, compared to £0.8bn from 11 IPOs last year.
The London Stock Exchange (LON:) witnessed the transition of companies from AIM to the main stock exchange, and the introduction of listing reforms seems to have instilled greater stability and investor confidence. With several significant listings in the pipeline, the UK IPO market is expected to grow further in 2025.
In the Middle East, IPO activity remained strong with more than 75 IPOs generating more than $13 billion, down slightly from the $14 billion raised in 2023. Momentum in the region was particularly strong in the fourth quarter, which resulted in the three largest IPOs of the year. . Africa also saw increased IPO activity, with two IPOs raising over US$500 million, up 60% year-on-year.
Globally, IPO revenues 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 revenues and falls 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 revenue despite uncertainties surrounding the presidential election.
The consumer discretionary sector led IPO activity by revenue, raising $18.3 billion, followed by industrials and financials. In contrast, the information technology sector, which was the largest in 2023, recorded a significant decrease in revenue.
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, director of capital markets at PwC UK, expects a further revival of the IPO market until mid-2025, depending on continued macroeconomic improvement.
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