Global IPO Market Shows Mixed Results in Q1 2024

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The global IPO market began the year with a decline in volume but an increase in value in the first quarter of 2024. Despite a 7% reduction in volume, the proceeds rose by 7% compared to the previous year. The Americas and EMEIA IPO markets performed well, while the Asia-Pacific region had a weaker start.

The global IPO market began the year on a cautiously optimistic note, according to analysis by EY, with activity declining in volume in the first quarter of the year, but increasing in value.

Encouragingly, the majority of key IPO markets witnessed a significant number of newly issued IPOs whose current share prices surpassed their offer prices – indicating an improvement in valuations and pricing levels and, potentially, reflecting growing confidence among issuers and investors. The analysis revealed the promise and potential of Artificial Intelligence – particularly Generative AI – is leading to significant investment into this rapidly expanding area.

Mr McAleavey said,"Positively, inflation continues to decline and interest rate cuts from Central Banks globally are more a question of 'when, not if'. This could attract investors back to IPOs by improving liquidity and return outlooks. However, the global economy remains on a soft growth trajectory in 2024, with developed markets likely to see modest growth while emerging markets stay on a firmer growth path".

 

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