After a challenging year, the global IPO markets started 2024 relatively positively. Investors and IPO candidates are hoping that stable interest rates and pent-up demand will support an increasing flow of IPO activity in the coming months
There is no denying that 2023 has been a challenging year for global IPO markets. Last year, in our Global IPO Report, we assumed that rising interest rates and uncertainty about the inflation outlook would have a negative impact on IPO activity. In 2024, as interest rates stabilize and macroeconomic conditions improve, IPO volumes are expected to recover. Companies that were on the defensive are gradually shifting their strategic focus back to growth and seeking IPOs to finance their plans. And private equity firms are recruiting IPO candidates to begin clearing the backlog of unsold assets that has built up over the past two years.
Additionally, IPO candidates in select jurisdictions will benefit from regulators' moves to make their listing regimes more attractive, with investors and companies welcoming the reforms in the UK and Hong Kong as their aim is to attract more IPOs.
Nobody gets carried away. However, after a difficult 2023, it is safe to say that global IPO markets are in a much stronger position today than they were a year ago.
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