As we reside in a new year, the global early public offering (IPO) presents an attractive tapestry of landscape challenges and opportunities. The year 2024 was marked by geo -political uncertainties, macroeconomic headwinds and developed regulatory framework, all of which have re -shaped the investment area.
Recently, in a firecide chat, industry expert Mike Tang, CFA, CPA, and Grace Yeoun, CFA, CPA entered major trends that define IPO market last year. From impressive growth in the US and AMIA (Europe, Middle East, India and Africa) to the stunning climb of the national stock exchange of India, the dynamics of global capital flows are shifting, interaction – facilitated by Faebe Chan – was revealed.
The year of 2024 presented a mixed bag of challenges and opportunities. Tang and Yeung discussed several major trends and comments during their firecide chat.
Globally, the total capital raised via IPO in 2024 rose to $ 119.1 billion, a 10% decline from the previous year. The number of listings also became contracted, falling from 1,371 in 2023 to 1,159 in 2024. While the overall market experienced the recession, a more fine picture is revealed.
Except for the A-Share market of the mainland China, the global IPO Dhan-razor experienced an upper, mainly operated by strong activities in the US and AMIA region, both with impressive growth rates of 50% and 40% respectively. This deviation suggests potential reconstruction of global capital flow, in which investors are looking for opportunities beyond traditional markets.
In 2024, a standout development that surprised both Tang and Youn, the National Stock Exchange of India (NSE) climbed to the top of the global IPO rankings, raising $ 17.3 billion. This remarkable climb shows India’s cumbersome economy, recent capital market reforms that have successfully attracted foreign investment, and the growing trend of multinational corporations has shut down its Indian subsidiaries. The $ 3.3 billion IPO of his Indian operations of Hyundai reflects the trend, outlining India’s growing importance as a hub for multinational operations, Tang and Young agreed.
Meanwhile, the NASDAQ and the New York Stock Exchange (NYSE) strengthened their positions in the global rankings, demonstrating permanent appeal to the US capital markets. NASDAQ benefited from the largest IPO, Dynasty Inc. of the year, raising $ 5.1 billion. In 2023, the total funds of the exchange reached $ 16.5 billion, which was above $ 12.5 billion in 2023. The revival of Chinese companies demanding US listing, operating from access to deep capital pool, also contributed to activities on US exchanges – 61 Chinese firms were made public in the US compared to 36 in 2024.
Focusing on Chinese firms, Shanghai and Shenzhen Stock Exchange, which led the Global IPO market in 2023, watched the plummate in 2024 at the time of the new listing of China Securities Regulatory Commission (CSRC). According to Tang, this policy indirectly benefited Hong Kong Bazaar as Chinese companies demanded alternative listing places.
The Hong Kong Stock Exchange (HKEX) made a remarkable comeback in 2024, back into the top five global rankings. With 63 new listings, including many of the mainland China, HKEX increased by HK $ 82.9 billion, 80% from 2023. Midea’s landmark HK $ 35.7 billion IPO, the second largest world level, was an important contributor to this rebound.
HKEX’s ongoing efforts to enhance its market attraction, IPO price search and recent consulting on open market requirements, shows their commitment to continuous development. CFA Institute and CFA Society Hong Kong contributed to the consultation process, and we will provide more detailed analysis of these proposed changes and their implications in the future article.
Today’s dynamic global IPO market navigating presents both exciting opportunity and underlying risks. While attractive returns are capable, investors should contact a new listing with a sensible eye. Complete diligence is necessary, including the company’s financial health, competitive status, and extensive analysis of the development trajectory-to carefully weigh the attraction of potential awards with underlying uncertainties with the enterprises of the granular phase.
Regulators play an important role in the market stability and promotion of investors. Rapidly developing markets like India, where NSE has recently seen a significant increase, has made calls for a strong regulatory structure. This includes not only clear listing requirements and transparent disclosure practices, but also includes effective enforcement mechanisms to ensure market fairness and investor protection.
The 2024 IPO market was defined by its mobility. The exchange ranking dramatically moved, with the rise of NSE, the continuous dominance of the US exchanges, and the rebounds of Hong Kong all narrated the story of developing market forces. This developed landscape will need to inform both investors and regulators to be cautious, living and reducing risks, reducing risks.
It is necessary to go for a new listing with a sensible eye. The company’s financial health, competitive status and widespread analysis of the development trajectory, are perfectly important. By weighing the attraction of potential awards against the underlying uncertainties of the initial stage undertakings, investors can take informed decisions.
