LONDON - European initial public offerings (IPOs) demonstrated a significant rebound in the first quarter of 2024, with proceeds quadrupling compared to the same period last year, according to a recent report by PwC's IPO Watch EMEA. This marks the strongest first-quarter performance since the record-setting year of 2021 and suggests a potential recovery in the IPO market.
In the first three months of 2024, Europe saw 13 IPOs raise €4.8 billion, a substantial increase from the €1.2 billion raised through 10 IPOs in the first quarter of 2023. This uptick also represents growth from the €1.1 billion raised in the last quarter of 2023. Noteworthy listings in Q1 included Galderma's €2.0 billion IPO on the SIX Swiss Exchange, Douglas' €889 million IPO on the Deutsche Borse, and Athen International Airport's €742 million IPO on the Athens Stock Exchange.
The London Stock Exchange (LSE) also experienced an increase in IPO proceeds, with £0.3 billion raised in Q1 2024, up from £0.1 billion in the same period the previous year. Additionally, the LSE witnessed significant secondary market transactions, including a £1.9 billion offering of its shares, indicating strong demand for quality stocks.
In contrast, the Middle East's IPO proceeds dropped to $1.4 billion in Q1 2024 from $4.1 billion in the previous year, despite a strong pipeline for the rest of the year. The region is diversifying, with consumer staples and industrials sectors becoming more prominent. The African IPO market remained quiet with no listings, as macroeconomic challenges persist, although efforts to enhance capital market efficiency are underway.
Globally, IPO proceeds amounted to $22 billion from 212 IPOs in Q1 2024, a 6% decrease from the same period in 2023. This reduction was primarily due to a slowdown in the Asia Pacific region, which saw proceeds fall from $14.6 billion to $7.6 billion. However, the global IPO pipeline remains robust, with Western markets expected to drive activity for the remainder of the year.
Kat Kravstov, Capital Markets Director at PwC UK, highlighted the positive aftermarket performance and diversified pipeline as indicators of a recovery phase in the IPO market. Vhernie Manickavasagar, Capital Markets Partner at PwC UK, pointed out the strong start to the year, with almost €5 billion worth of IPOs, and a healthy pipeline of private equity-backed IPOs for 2024.
This article is based on a press release statement.
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