IPO activity picked up around the globe in the past quarter as interest in new technologies such as artificial intelligence (AI) offset uncertainty around geopolitics and national elections.
In total, 310 new companies were welcomed onto stock exchanges around the world in the third quarter of 2024, down 14% on the same period the year before, with fundraising of US$24.9 billion down 35%, according to research by EY.
However, this outpaced the IPO performance in the first two quarters of 2024, when a total of 551 IPOs raised US$52.2 billion for the first half as a whole, with volumes down 12% and funding down 16%.
Listings in the Americas and EMEIA (Europe, the Middle East, India and Africa) regions in the first three quarter showed double-digit growth in deal numbers and proceeds compared to the same period last year.
Asia-Pacific also saw a rebound in the quarter, EY found, driven by increased activity in mainland China, Indonesia, Malaysia and South Korea.
Investor funds flowed into AI, with more than 60 AI companies completing IPOs in the sub-sector in the past two years.
A further 50 AI companies globally are currently in IPO registration.
Central bank interest rate decisions and government stimulus measures, along with geopolitical developments and election results in the US, are all potential factors that could spark an upturn or downturn in global IPOs.
EY forecasts that a strong performance in the US, Europe and India should drive global listing activity into 2025.
"Investors are preparing for increased volatility in the second half of 2024," said Debbie O’Hanlon, EY's UK private leader. "With inflation and interest rates declining, new factors are becoming more important in shaping IPO decisions.
"In this uncertain climate, businesses seeking to take advantage of IPO opportunities will need to focus on strategic market timing and strong equity stories."