The number of initial public offerings (IPOs) closed in 2023 was 1,298, raising US$123.2 billion Ernst & Young has highlighted in a new report.
During the year, global IPO volumes fell 8% with proceeds down 33% over 2022.
In the Americas, IPO activity grew 15% over 2022 while proceeds nearly tripled due to several high-profile deals. The region saw seven debuts that raised more than US$500 million in 2023 compared to four in the previous year.
Technology IPOs led in terms of proceeds for 2023, while industrials saw the most deals and the consumer sector was the only one to grow in both IPO volume and proceeds.
“Enthusiasm for IPOs is high and smaller deals are emerging with improved after-market performance,” EY Global IPO leader George Chan commented.
“While many governments are taking measures to boost IPOs, activity is particularly strong in high-growth economies.”
Chan noted that moderating inflation and potential interest rate cuts in 2024 could attract investors back to IPOs by improving liquidity and return outlooks, but sustained geopolitical instability may undermine confidence.
“Before monetary policy eases and geopolitical climate stabilizes, IPO-bound companies should keep their eyes on building fundamentals and managing price expectations to capitalize on the fleeting windows as 2024 progresses,” he said.