Global IPO activity showed steady progress in 2024. Although geopolitical volatility still lingers, the foundations are in place for another solid year
2025 has the potential to be a strong year for global IPO activity, with the year off to a solid start as global IPO deal value and IPOs for January 2025 showing gains on 2024 figures.
IPO volumes in the US and Europe are showing comparatively positive signs after a relatively quiet period, while India and the Middle East have firmly established their position as the fastest-growing IPO hubs that have the depth, liquidity and IPO pipelines to deliver deals.
While the overall outlook for global IPOs is broadly positive, the level of activity will continue to diverge among different regions as local economic themes, newfound depth in certain local markets and sector trends determine which IPO markets generate the most activity.
Against the backdrop of dynamic interplay between regional and global market drivers, some policymakers are supporting their stock exchanges by establishing frameworks to improve long-term competitiveness and attractiveness for issuers and investors.
In 2025, global IPO volume will be driven by:
- A surge in private equity-backed IPOs: Private equity-backed IPOs will see a surge in activity as sponsors move to exit companies that have been held in portfolios for longer than anticipated. According to McKinsey, the backlog of unexited private equity portfolio companies make up a larger share of total portfolio companies than at any point in the past two decades. Private equity firms will be compelled to clear their backlog and, as stock market valuations improve, IPOs will present an increasingly attractive option for portfolio company exits.
- Europe will be a market to watch: European IPO activity made steady year-on-year gains in 2024 and to date in 2025, but there is still a large, unused capacity in the market, as IPO issuance is still below the long-term average. However, European equity markets have a proven track record of being able to digest large equity placings. Follow-on equity offerings across Europe have been strong and accelerated bookbuild offerings have rallied back up to long-term averages. Liquidity and investor appetite are ready to support IPOs in the same way.
- More private company IPOs in the Gulf: The growth and sophistication of IPO markets in the Gulf states have been underpinned by a pipeline of high-quality state-owned entities coming to market. In 2024, private companies also stepped up, with Talabat and Lulu Retail's breakthrough private sector company flotations. The pathway has been opened for others to follow in 2025.
- India is in line for another bumper year: India's emergence as the most active IPO market in the world has set the country up for a blockbuster 2025. At least seven companies planning to raise at least US$1 billion are lining up their India IPOs, according to the Financial Times. Brokerage and asset management group Motilal Oswal forecasts that overall equity fundraising from IPOs in India could exceed US$23 billion in 2025. The growth trajectory of India's IPO markets in recent years still has room to run.
- Value on offer on LatAm: Latin American IPO markets will have to contend with an uncertain macroeconomic backdrop. However, the region is teeming with profitable, low-leverage and well-run companies in growth mode, which present attractive IPO opportunities for investors who understand the region.
- Hong Kong rising: Hong Kong stock markets have had a difficult run with large, international companies moving listings and new candidates to replace them in thin supply. However, the next 12 months appear to be promising, with Hong Kong aiming to support the raising of up to US$20 billion in new funds. Fast-growing Chinese companies with extensive international operations have often turned to the US stock markets when listing, but rising trade and tariff tensions have made this a more complex option. Meanwhile, Mainland China's stock markets have been muted as a result of slower than anticipated domestic GDP growth. Hong Kong sits in the ideal position to serve the capital and strategic ambitions of these new issuers.
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