Global IPO activity sees 10 percent annual decline in 2024
Date
1/12/2025 3:00:08 AM
(MENAFN) Global initial public offering (IPO) activity saw a 10 percent year-on-year decline in 2024, with a total of 1,215 IPO transactions, according to a report from the UK-based professional services firm EY. The report highlighted that while the total number of IPOs decreased, the revenues from these transactions also dropped by 4 percent, amounting to USD121.2 billion. The performance of the global IPO market was relatively weaker in the first half of the year, but it saw a significant recovery in the second half, particularly in the fourth quarter.
Private equity and venture capital-backed companies accounted for 46 percent of the total IPO revenues in 2024. Notably, 12 of the top 20 largest IPOs worldwide were backed by private equity, and 18 unicorns, or startups valued at USD1 billion, went public. Half of these unicorns had venture capital backing. The technology, media, telecom, industrial, and consumer sectors saw the highest number of IPO transactions and revenues, while the energy and mining sectors experienced a decline.
The technology sector, excluding Greater China, performed particularly well, generating USD20.4 billion in IPO transaction revenues, marking a 39 percent increase from the previous year. Meanwhile, the healthcare and related industries also experienced a strong performance, with revenues reaching USD17.1 billion, up 37 percent. In the growing field of artificial intelligence (AI), around 60 AI companies are currently in the IPO process, and 400 are preparing to go public.
According to the report, the Americas and the EMEIA (Europe, the Middle East, India, and Africa) regions saw a recovery in IPO activity last year, driven in part by the restructuring of global supply chains and positive economic growth.
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