The IPO market in the first six months of this year may resemble H1 2024 by certain measures, as deal volume was largely the same.
Yet a closer look at the two first-half periods looked different in other important ways. For one, total IPO proceeds came in at $61.4 billion, a 17% YoY uptick. But the market showed that larger shifts were afoot.
Thanks to external forces such as “trade tariff effects, policy decisions, and investor risk appetite,” IPO activity momentum varied based on region, according to EY’s latest Global IPO Trends report.
Last year, greater China made up just 12% of IPO proceeds globally, while Europe accounted for 27%. This year, the roles shifted in what the report authors called a “stunning reversal.” China accounted for roughly a third (34%) of all IPO proceeds while Europe fell to 10%.
The US claimed 20% of IPO volume and 28% of proceeds. China accounted for 19% of total IPOs, and Europe accounted for 9%.
“The realignment of the IPO market across regions and sectors reflects a deeper shift in global capital flows and investor sentiment,” George Chan, global IPO leader at EY, said in the report. “As markets recalibrate in real time, robust IPO readiness will be essential for companies to navigate short-term volatility while aligning their IPO strategies with long-term macro trends.”
The US accounted for 93% of cross-border IPOs, a “dramatic surge” from 30% in 2016, according to the report.
EY described the IPO market outlook as “cautiously optimistic,” adding that activity is dependent on “cooperative trade frameworks, accommodative monetary policy, controlled inflation and geopolitical de-escalation.”
News built for finance pros
CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.