Sam-il PwC "Signs of Recovery from Global IPO Market Slump... Optimal Time for Listing"

Rising US Stock Market Rally and European Stock Market Rebound Raise Expectations
Q1 Public Offering Size Down 6%, Number of Cases Down 11%
South Korea's Public Offering Size Up 16%

Although the scale of global initial public offerings (IPOs) decreased in the first quarter, it has been argued that the second half of the year could be the optimal time for listings as expectations for the IPO market arise depending on industrial and regional characteristics.

On the 30th, the global IPO team leader at Samil PwC stated, “The global IPO market is showing positive signs as it emerges from a two-year slump. In particular, whether interest rates will be cut in the second half of the year, the boom in specific markets and industries, and increased demand from investors to recover their investments will be positive factors that invigorate the IPO market.”

However, he added, “The overheating of the U.S. labor market and high inflation rates worldwide are factors delaying the timing of interest rate cuts, and geopolitical uncertainties, raw material prices, and the election results of major countries throughout this year could affect the IPO market.” He continued, “Although there are various variables, from the perspective of companies planning IPOs, this is considered the optimal time to prepare for listing. If thorough analysis is conducted on the securities market to enter, companies will be able to respond flexibly to the timing of their listing.”

The global IPO market in the first quarter of 2024 showed a rise rally in the U.S., a rebound in European stock markets, and a boom in India and the Middle East, while the Chinese and Hong Kong markets showed sluggishness. Europe conducted 13 IPOs in the first quarter of 2024 (10 IPOs in the first quarter of 2023), raising 4.8 billion euros (1.2 billion euros in the first quarter of 2023), showing a strong recovery. In India, if the upward trend of the Indian stock market, which raised 2 billion dollars in the first quarter of 2024, continues until the end of this year, the annual public offering scale is expected to exceed 9 billion dollars. On the other hand, due to the continued sluggishness of the China and Hong Kong IPO markets, the Asia-Pacific region’s IPO public offering amount was 7.6 billion dollars, a 48% decrease compared to 14.6 billion dollars the previous year. Looking at South Korea alone, it increased by 16%.