MUMBAI: India topped the global IPO market with 227 transactions totalling $12.2 billion in the first eight months of 2024. This was led by strong market sentiment, a robust macroeconomic environment, and a surge in investor interest fuelled by fear of missing out, data and analytics firm GlobalData said on Friday.
The Asia-Pacific region recorded the largest number of transactions, totalling 575, amounting to $23.7 billion in value, while North America had 149 deals valued at $25.4 billion, data showed.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.
In India, both the SME and mainboard IPO segments have contributed to the surge, supported by strong demand from local retail investors and institutions, the data showed. While the number of IPOs globally declined in the first eight months of 2024, the total deal value saw a significant surge, according to the data.
Getting a boost from SME IPOs
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. GlobalData said this indicates a shift towards larger, more valuable IPOs.
“The IPO market underwent a significant uptick in activity in 2024 as macroeconomic conditions stabilised 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 after-market performance witnessed in 2023,” said Murthy Grandhi, analyst at GlobalData.
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), according to the database.
“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,” Grandhi added.
