Emir Yildirim
09 January 2025•Update: 09 January 2025
ISTANBUL
Global initial public offering (IPO) transactions were down 10% year-on-year, totaling 1,215 in 2024, according to a recent trends report by the UK-based professional services firm EY.
Last year’s IPO transaction revenues saw a 4% decline on an annual basis, reaching $121.2 billion, as the global IPO market’s performance was not as strong in the first half of the year, though this increased in the second half, especially in the fourth quarter, it said.
Private equity and venture capital-backed portfolio firms accounted for 46% of the total IPO revenues, as 12 of the top 20 largest IPO transactions worldwide were backed by private equity, while 18 unicorns (startups worth $1 billion) went public during the year, half of which were funded by venture capital-backed firms.
The technology, media, and telecom, industrial, and consumer sectors had the highest number of IPO transactions and revenues in 2024, while the energy sector, mining and metals, in particular, fell, the report noted.
The technology sector, excluding China (Greater China region), saw IPO transaction revenues of $20.4 billion, rising 39%, while healthcare and related fields generated a revenue of $17.1 billion, up 37%.
As for artificial intelligence (AI) and related fields, the firm mentioned that some 60 AI firms are in the PO process while 400 are preparing to go public.
The report said the Americas and the EMEIA (Europe, the Middle East, India, and Africa) recovered in IPOs last year, led by the restructuring of the global supply chains and economic growth.
India dominated the US and Europe with 327 IPO transactions with a $19.9 billion revenue, in proceeds, while the US topped the rest of the world in IPO revenues with $32.8 billion, totaling 183 transactions.
Meanwhile, Türkiye saw the highest number of IPO transactions in Europe with 34, generating a revenue of $1.7 billion last year.
The firm expects the global IPO market to be influenced by changing monetary policies of the world’s central banks, ongoing geopolitical uncertainties, potential changes in the global supply chain, the rise of AI, digital transformation efforts, new state administrations, and priorities of countries in the ESG (environmental, social, and governance) principles moving forward.
