(News Bulletin 247) – The global IPO market remained sluggish in 2024. In Europe, the recovery was somewhat disrupted by the political context when the American market regained first place worldwide in terms of amounts raised.

After two complicated years, this is another vintage with an unflattering record for the global IPO market, with divergent dynamics, notes EY in its latest report “EY Global IPO Trends 2024”.

In 2024, the number of IPOs around the world has certainly fallen further, to 1,215 operations, for a total amount raised of $123.2 billion. This activity is down 10% in volume and 4% in value compared to the $126.1 billion raised in 2023.

Remember that in 2023 the number of operations contracted by 8% after having already fallen by 45% to 1,333 units, in 2022 due to a macroeconomic and geopolitical context which had not encouraged companies to throw yourself into the stock market deep end.

The United States: world number one in amounts raised

Coming back to 2024, the IPO market has collapsed in Asia-Pacific. This zone recorded 488 IPOs in 2024 for a total amount of $39.4 billion, and thus recorded declines of 35% in volume and 51% in value.

“Economic, political and geopolitical uncertainties, as well as restrictive monetary policies globally, have combined to form a ‘perfect storm’, driving IPO activity across the Asia-Pacific region to an all-time high the lowest in 11 years,” says EY.

“Tight liquidity, challenging valuations, post-IPO underperformance and weakening confidence have prompted many companies to delay or reconsider their IPOs, particularly earlier this year 2024,” adds the firm.

On the other hand, the American market regained first place in the world in amounts raised for the first time since the peak of 2021 with 205 operations carried out for an amount of 33.1 billion dollars raised. This reflects an increase of 37% in volume and 45% in value, notes EY, with the American market “continuing to stand out as the most dynamic and attractive for global investors”.

Of the 205 IPOs made on American soil, 101 were led by foreign companies. “These companies come to find a larger investor base, who can better understand their business, with more comparable securities, and who are often willing to pay a higher valuation,” explained Ben Laidler, global market strategist at 2023. Etoro.

“The increase in IPO activity in 2024 has resulted in greater confidence among IPO candidates in preparing for listing,” notes IPO specialist Rachel Gerring at EY for the Americas region.

A half-fig, half-grape vintage Europe

In Europe, the IPO market is showing some signs of improvement, although this recovery is mixed. In 2024, EY counted 125 IPOs which raised 19.1 billion euros, a contraction of 16% in number, but an increase of 41% in value.

However, the IPO market had regained strength in the first months of 2024. The terrain was favorable for successfully carrying out this type of operation, thanks to indexes at their highest and expectations of declines. interest rate. Moreover, the firm notes that this geographical area was the scene of six of the ten largest IPOs globally. The firm cites the IPO of the family fashion group Puig, which carried out the largest operation of the year on the Old Continent with 2.9 billion dollars raised, and that of the Swiss dermatological care specialist Galderma, which allowed it to raise 2.3 billion Swiss francs.

EY also mentions the IPO of the CVC investment fund which managed to raise at least 2 billion euros in April 2024, which at the time constituted the largest IPO on European soil since the beginning of the year.

In Paris, the year was not good, the political context having discouraged candidates from launching on the stock market. Only 5 companies tried their luck this year for a total amount of $291.3 million, notes EY.

Only two companies not resulting from a split have tried their luck on Euronext Paris since the start of the year. The first being the project management software publisher Planisware in April, followed by the arrival of the defense gem Exosens in June. Remember that Sodexo inaugurated Parisian operations for 2024 by successfully piloting the IPO of Pluxee, its restaurant voucher division, at the beginning of February.

On the other hand, on the small and mid-cap side, the counter finally opened up from November, with the IPO of Lighton, a specialist in generative artificial intelligence for businesses, followed by that of Odyssey Technologies in December.

These two companies were joined by Louis Hachette Group – resulting from the split from Vivendi – which also took its first steps on Euronext Growth last month.

A caution for 2025

Point of satisfaction, EY noticed a dynamism in the IPO market at the end of the year, with 343 operations carried out and 43 billion euros raised over the last three months of 2024. This is 10% in volume and 69 % in value more than in the previous quarter.

There is therefore some slight hope for 2025. EY expects that “the IPO market will remain on a solid trajectory for 2025, supported by a cautiously optimistic economic environment, increasingly accommodative monetary policies, increased liquidity, high valuation levels and enhanced investor confidence.”

The firm shows its confidence in particular for the American market, which should benefit from financial market deregulation measures. “The current economic environment, particularly in the United States, suggests better performance for the year to come. The market will be supported by increasingly favorable sectoral themes such as AI, digital and environmental transformations and higher levels increased liquidity and valuation in certain markets”, comments Cédric Garcia, partner at EY.

In the United States, several companies have already expressed their wish to join the financial markets in 2025. The Swedish split payment giant Klarna has chosen Wall Street to list on the stock exchange. To this end, he filed a confidential IPO plan with the Securities and Exchange Commission (SEC), the American stock market watchdog, last fall.

Skims, Kim Kardashian’s clothing company, remains a potential candidate for an IPO for 2025, as does fintech Chime, which is also aiming to enter the American financial markets this year, reports Bloomberg citing sources familiar with the matter.

In Europe, on the other hand, EY is “cautiously optimistic”. Growth prospects on the Old Continent remain dull, with a modest increase in GDP expected for 2025. The increase in customs tariffs desired by the Trump administration could also hamper the timid recovery of IPOs in Europe. “These customs duties could hamper economic expansion and introduce volatility into the IPO market,” warns EY.

Golden Goose could, however, try its luck again in 2025 to enter the Milan Stock Exchange. The Italian luxury sneaker brand threw in the towel shortly before summer 2024, due to the political climate on the Old Continent.