Global capital markets witnessed a significant expansion in 2024, as initial public offerings (IPOs) raised more than $36.4bn, more than doubling the $16.14bn raised in 2023.
Despite a decline in the overall number of IPOs, the average deal size grew by 7.6 per cent year-over-year, reflecting strong investor appetite for larger listings.
Data from the World Federation of Exchanges (WFE) seen by THE WHISTLER, highlights a notable increase in high-value IPOs, with the number of deals exceeding $1bn more than doubling compared to the previous year.
However, while larger companies successfully tapped into public markets, overall trading sizes reached their lowest levels in five years, suggesting a rise in retail investor participation.
The Chief Executive Officer of the WFE, Nandini Sukumar emphasized the importance of maintaining robust public markets, stating, “Investors turn to public markets to finance the future.
“As we start 2025, it’s crucial for new governments and policymakers worldwide to reaffirm their commitment to keeping these markets dynamic. We need to see policies that not only foster investment in transparent, well-regulated markets but also empower and encourage businesses to list and access essential capital for growth.”
Geopolitical tensions and evolving monetary policies remained key factors shaping global IPO activity in 2024.
Head of Research at the WFE, Dr. Pedro Gurrola-Perez pointed to macroeconomic uncertainties, election cycles, and shifting monetary policies as major influences on market performance.
“The data reflects the persistence of geopolitical tensions and uncertainty derived from elections. In 2024, we also saw substantive changes in monetary policy around the world.
Looking ahead, geopolitical tensions will remain a key driver of capital markets and a determiner of business confidence, IPO activity, and investor sentiment.
“By mid-year, the data should reflect the impact of U.S. policy developments on global markets. Longer-term, technological advancements may play an increasing role in shaping market composition and growth,” he said.
As 2025 begins, analysts will closely watch how government policies, interest rates, and geopolitical developments impact IPO activity. While challenges persist, the surge in high-value IPOs underscores the resilience of global capital markets and their role in funding future economic growth.
