India topped the global initial public offering (IPO) market, with 227 transactions totaling $12.2 billion in the first eight months of 2024.
GlobalData, a leading data and analytics company, reported that India’s remarkable performance came amidst 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,” added GlobalData.
Number of IPOs globally declines
While the number of IPOs globally declined in the first eight months of 2024, the total deal value saw a significant surge. The first eight months of 2024 saw a total of 822 IPOs with an aggregate deal value of $65 billion, reflecting a 17.4 percent 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 decline in the number of listings.
“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,” stated Murthy Grandhi, company profiles analyst at GlobalData.
Shift in investor focus
GlobalData also noted a noticeable shift in investor focus over the past two years with markets placing greater emphasis on the financial sustainability and profitability of newly listed companies.
“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,” added Grandhi.
Leading sectors
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 worth $11.6 billion, construction with 79 transactions worth $3.9 billion, and pharmaceuticals and healthcare with 75 deals worth $7 billion.
Read: Meta raises $10.5 billion in debt offering to supercharge AI investments, outpace competition
Asia-Pacific region sees most transactions
The report also revealed that the Asia-Pacific region recorded the largest number of transactions, totaling 575, amounting to $23.7 billion in value. Meanwhile, North America had 149 deals valued at $25.4 billion.
At the country level, India topped with 227 IPOs valued at $12.2 billion, primarily due to a higher number of SME IPOs. The U.S. came in second with 133 deals of $23.1 billion while China ranked third with 69 transactions worth $5.3 billion.
“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,” added Grandhi.
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