Samil PwC "This Year’s IPO Market More Active... US to Lead Recovery"

Samil PwC: Global IPO Market Expected to Recover in 2024
US and Europe Lead Growth Amid Macroeconomic Stability
AI-Driven Tech Firms Delay Listings, Favor Private Fundraising
Geopolitical Risks and Market Volatility Remain Key Challenges

This year, the global initial public offering (IPO) market is expected to become more active, led by the United States, due to macroeconomic stability and moves to reduce regulations on capital issuance.

IPO fundraising amounts and number of transactions by major region (2022-2024, unit: billion USD). Provided by Samil PwC

On the 20th, Samil PwC announced this based on PwC's recently published report, "Global IPO Performance and 2025 Outlook."

According to the report, last year, the global IPO fundraising amount totaled $105.6 billion (approximately 154 trillion KRW), marking a 9% decrease compared to the previous year. The main reason cited was the contraction of IPO activities in China and Hong Kong. In contrast, fundraising amounts in the United States and Europe increased by 57% and 105% respectively, showing a clear recovery. The report evaluated this as an achievement "despite uncertainties brought by the U.S. presidential election and economic slowdowns in some European countries."

By industry, the Consumer Discretionary sector ranked first with $18.3 billion. It was followed by Industrials ($17.8 billion), Financials ($15 billion), and Consumer Staples ($13.9 billion). Meanwhile, the Information Technology (IT) sector, which attracted the most funds until last year, decreased by 59% compared to the previous year despite some companies’ successful listings. The report analyzed, "With recent advancements in artificial intelligence (AI) increasing the value of both listed and unlisted tech companies, the current situation shows that unlisted tech companies can raise sufficient funds without going through IPOs."

The report forecasts that the global IPO market will become more vibrant this year, with the United States leading the market recovery. Daniel Purtig, partner at Samil PwC, stated, "The U.S. market environment is becoming favorable thanks to continuous interest rate cuts, policy predictability, and investor confidence, and more companies that view AI as a long-term growth driver will enter the market." He added, "The efforts of European exchanges and regulators to simplify regulations to support IPOs and capital issuance will also have a positive impact on the market."

Kim Gi-rok, leader (partner) of the Global IPO team at Samil PwC, said, "Geopolitical risks still act as downward factors, and due to market volatility and macroeconomic influences, IPO windows will open and close rapidly." He advised, "Companies planning IPOs should take sufficient time and prepare thoroughly, and even if aiming for listing after next year, they should start preparing now." Detailed analysis can be found on the Samil PwC website.