MUMBAI: India topped the world IPO market with 227 transactions totalling $12.2 billion in the primary eight months of 2024. This was led by robust market sentiment, a strong macroeconomic atmosphere, and a surge in investor curiosity fuelled by concern of lacking out, knowledge and analytics agency GlobalData stated on Friday.
The Asia-Pacific area recorded the most important variety of transactions, totalling 575, amounting to $23.7 billion in worth, whereas North America had 149 offers valued at $25.4 billion, knowledge confirmed.India topped with 227 transactions valued at $12.2 billion, primarily attributable to a better variety of SME IPOs. The US got here in second with 133 offers of $23.1 billion, whereas China ranked third with 69 transactions value $5.3 billion.
In India, each the SME and mainboard IPO segments have contributed to the surge, supported by robust demand from native retail traders and establishments, the information confirmed. While the variety of IPOs globally declined in the primary eight months of 2024, the whole deal worth noticed a big surge, in line with the information.
Getting a lift from SME IPOs
A complete of 822 IPOs have been registered with an combination deal worth of $65 billion, reflecting a 17.4% rise in worth in comparison with the $55.4 billion from 1,564 listings throughout the identical interval in 2023. GlobalData stated this signifies a shift in direction of bigger, extra helpful IPOs.
“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. Investor sentiment towards equities, particularly IPOs, continued to improve, buoyed by the strong after-market performance witnessed in 2023,” stated Murthy Grandhi, analyst at GlobalData.
The sectors main the best way in IPO exercise have been know-how and communications, registering 135 transactions with a complete worth of $6.4 billion. Following carefully have been monetary companies, with 113 offers ($11.6 billion), development with 79 transactions ($3.9 billion), and prescribed drugs and healthcare with 75 offers ($7 billion), in line with the database.
“The trajectory of the IPO market will continue to be influenced by a complex set of factors, including shifts in monetary policy, geopolitical developments, and evolving investor preferences… Amidst these, companies that demonstrate strong financial fundamentals and clear growth can appeal to an increasingly selective investor base. The ability to showcase resilience and long-term sustainability will be key for businesses seeking to attract capital in this evolving market environment,” Grandhi added.
