IPOs: India First, US Second, China Third

India topped the APAC region with 227 transactions in the first eight months of CY24.
The US was second with 133 deals while China ranked third with 69 transactions.

The primary market is not just luring Indians but also people from around the world.

As many as 822 initial public offerings (IPO) in various countries sought to raise $65 billion in the first eight months of calendar year 2024 (CY24) till August, according to a report by GlobalData, a London-based data analytics firm.

It is a 17.4 per cent jump from 2023 when 1,564 listings in the same period planned to mopup $55.4 billion via IPOs.

Investors are shifting towards larger and more valuable IPOs at the global level despite fewer listings in 2024, according to the report.

'There has been a noticeable shift in investor focus over the past two years, with greater emphasis on the financial sustainability and profitability of newly listed companies,' the GlobalData report stated.

'This change signals a more discerning approach from investors, given the backdrop of tighter monetary conditions and persistent market uncertainties,' it said.

Indian IPO market tops APAC tally

Asia Pacific (APAC) recorded the largest number of transactions, totaling 575 and amounting to $23.7 billion, while North America had 149 deals valued at $25.4 billion, said GlobalData.

India topped the APAC region with 227 transactions totaling $12.2 billion in the first eight months of CY24, the report said, primarily due to IPOs by small and medium enterprises.

The United States was second with 133 deals of $23.1 billion, while China ranked third with 69 transactions worth $5.3 billion.

"The IPO market underwent a significant uptick in activity in 2024 as macroeconomic conditions stabilised and there was a resurgence in private equity and venture capital-backed listings," said Murthy Grandhi, company profiles analyst at GlobalData.

"Investor sentiment towards equities, particularly IPOs, continued to improve, buoyed by the strong aftermarket performance witnessed in 2023," Grandhi explained.

According to the report the sectors that lead global IPO activity in 2024 are technology and communications, registering 135 transactions with a total value of $6.4 billion.

Financial services comes next with 113 deals ($11.6 billion), construction with 79 transactions ($3.9 billion), and pharmaceuticals and health care with 75 deals ($7 billion).

At the global level, said Grandhi, companies planning for IPOs are prioritising revenue growth, profitability metrics and sustainable business strategies.

Feature Presentation: Ashish Narsale/Rediff.com