IPO Surge in Europe: Revenues Double in 2024 - Report
LONDON - The IPO market in Europe experienced a significant recovery in 2024. Driven by improving macroeconomic conditions and decisive election outcomes, revenues more than doubled compared to the previous year.
According to PwC's latest IPO Watch EMEA 2024 report, Europe saw 57 IPOs generating €14.6 billion in revenue. This represents an increase of €7.4 billion compared to €7.2 billion from the same number of IPOs in 2023.
Although the UK IPO market showed signs of progress despite a slight decline in revenues, last year generated £0.8 billion from 11 IPOs, while this year produced £0.7 billion from 8 IPOs.
The London Stock Exchange witnessed companies transitioning from AIM to the Main Market, with the implementation of listing reforms appearing to provide greater stability and investor confidence. With several significant IPOs planned, further growth is anticipated in the UK IPO market in 2025.
IPO activity in the Middle East remained strong, generating over $13 billion from more than 75 IPOs, which indicates a slight decrease from the $14 billion achieved in 2023. The region's momentum was particularly strong in the fourth quarter, featuring the three largest IPOs of the year. In Africa, IPO activity also increased, with over $500 million generated from two IPOs, representing a 60% rise compared to the previous year.
Globally, a total of $105.6 billion was raised from 876 IPOs in 2024, reflecting a 9.6% decrease compared to 2023. This decline was largely driven by a slowdown in China, where IPO revenues dropped by 78%. However, this was partially offset by rising issuances in India and a strong pipeline in the Middle East. The US market reported a 56% increase in IPO revenues despite uncertainties surrounding the presidential election.
The consumer discretionary sector led IPO activity in terms of revenue with $18.3 billion, followed by the industrial and financial sectors. In contrast, the information technology sector, which was the largest in 2023, experienced a significant decline in revenues.
Vhernie Manickavasagar, Partner of Capital Markets at PwC UK, highlighted the success of private equity-backed IPOs in Europe and the return of net fund inflows into UK equities for the first time in 42 months. Kat Kravstov, Director of Capital Markets at PwC UK, anticipates further revitalization in the IPO market around mid-2025, contingent upon the continuation of macroeconomic improvements.
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