India topped the global IPO market, with 227 transactions totaling $12.2 billion in the first eight months of 2024. The remarkable performance was driven by strong market sentiment, a favorable macroeconomic environment, and a surge in investor interest fueled by fear of missing out (FOMO). Both the SME and mainboard IPO segments have contributed to this success, supported by strong demand from local retail investors and institutions, reveals GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database reveals that while the number of IPOs globally declined in the first eight months of 2024, the total deal value saw a significant surge. A total of 822 IPOs were registered with an aggregate deal value of $65 billion, reflecting a 17.4% rise in value compared to the $55.4 billion from 1,564 listings during the same period in 2023. This indicates a shift towards larger, more valuable IPOs despite the reduced number of listings.
Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: “The IPO market underwent a significant uptick in activity in 2024 as macroeconomic conditions stabilized and there was a resurgence in private equity and venture capital-backed listings. Investor sentiment towards equities, particularly IPOs, continued to improve, buoyed by the strong aftermarket performance witnessed in 2023.”
In addition, there has been a noticeable shift in investor focus over the past two years, with greater emphasis on the financial sustainability and profitability of newly listed companies. This change signals a more discerning approach from investors, given the backdrop of tighter monetary conditions and persistent market uncertainties.
Grandhi explains: “In response, companies planning for IPOs are increasingly prioritizing revenue growth, profitability metrics, and sustainable business strategies, reflecting a broader trend towards long-term financial resilience and responsible growth.”
The Asia-Pacific region recorded the largest number of transactions, totaling 575, amounting to $23.7 billion in value, while North America had 149 deals valued at $25.4 billion.
At country level, India topped with 227 transactions valued at $12.2 billion, primarily due to a higher number of SME IPOs. The US came in second with 133 deals of $23.1 billion while China ranked third with 69 transactions worth $5.3 billion.
The sectors leading the way in IPO activity were technology and communications, registering 135 transactions with a total value of $6.4 billion. Following closely were financial services, with 113 deals ($11.6 billion), construction with 79 transactions ($3.9 billion), and pharmaceuticals and healthcare with 75 deals ($7 billion).
Few prominent IPOs include Galderma Group and Reddit Inc fetching $2.6 billion and $750 million, respectively.
Grandhi concludes: “The trajectory of the IPO market will continue to be influenced by a complex set of factors, including shifts in monetary policy, geopolitical developments, and evolving investor preferences. Amidst these, companies that demonstrate strong financial fundamentals and clear growth can appeal to an increasingly selective investor base. The ability to showcase resilience and long-term sustainability will be key for businesses seeking to attract capital in this evolving market environment.”
