HomeAnalysisEY Global IPO Trends Q1 2024 Revealed

EY Global IPO Trends Q1 2024 Revealed

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According to the EY Global IPO Trends Q1 2024, the year began optimistically.

The Americas and EMEIA IPO markets had a good start in 2024, increasing global proceeds. However, the Asia-Pacific region started on a weak note, lowering the overall global volume.

For Q1 2024, the global IPO market saw 287 deals raise US$23.7b, a 7% decrease but a 7% increase year-over-year (YOY), respectively. Approximately 10 PE-backed IPOs came to the market.

The promise and reach of the artificial intelligence (AI) vertical is currently experiencing growth within the private markets, with the majority of AI and AI-associated businesses still in the seed or early stage of venture capital (VC) rounds. This suggests there could be an increase in IPOs in future years as these companies mature in the private markets before making a public debut.

The Americas continued to exhibit an enhanced performance in IPO activity compared with both the previous quarter and Q1 2023, with 52 deals and US$8.4b in proceeds, up 21% and up a 178%, respectively, YOY. Each of the top seven deals in Q1 2024 raised over US$500m, versus one in Q1 2023.

Asia-Pacific IPO activity in Q1 recorded 119 deals and US$5.8b in proceeds, down 34% and 56% YOY, respectively. This decline was strong in Mainland China and Hong Kong, with the number of deals decreasing more than half and deal size falling by nearly two-thirds. Both markets have experienced a decline in IPO activity over the past few years. There have been only 10 IPOs so far this year in Hong Kong, with two exceeding US$100m in deal size, marking a historic low since 2010 by proceeds. 

The EMEIA IPO market witnessed a meaningful growth at the start of the year, launching 116 IPOs totaling US$9.5b in the first quarter, up 40% and 58% YOY, respectively. This rise was attributed to larger average deal sizes from IPOs in Europe and India, which enabled EMEIA to maintain first place in global IPO market share by proceeds since Q4 2023. Since 2019, India has rapidly gained prominence, particularly in the number of IPOs, and has now emerged as a standout performer.

VCWire

01/04/2024