Samil PwC: "Global IPO Proceeds Up 17% in First Half of This Year"

Recovery Led by the US and Asia Expected to Continue in the Second Half
"Uncertainty Remains... Risk Management and Flexible Strategies Are Essential"

On July 15, Samil PwC announced that it had published a report covering global initial public offering (IPO) performance for the first half of this year (January to June) and its outlook for the second half (July to December).

According to the report, the total amount raised through global IPOs in the first half of this year was $58.2 billion, representing an increase of approximately 17% compared to the same period last year ($49.6 billion). The number of IPO deals also rose by 9%, from 444 to 486.

By region, the Americas led the global increase, with the amount raised rising 56% year-on-year to $27.5 billion. The Nasdaq and New York Stock Exchange raised $19.4 billion and $8.1 billion, respectively, driving the market recovery. Notably, IPOs by special purpose acquisition companies (SPACs) accounted for over 40% of IPOs in the first half.

In Asia, IPO activity showed signs of recovery, especially in China, Hong Kong, India, and Japan. Although the number of IPOs decreased by 34 compared to the same period last year, the average amount raised per deal increased, bringing the total amount raised to $21.3 billion. JX Advanced Metals Corporation, a Japanese semiconductor-related company, raised $2.5 billion through its IPO, and India accounted for two of the top 10 global IPOs in the first half, continuing its active participation in the market.

In Korea, a total of 40 IPOs raised KRW 2.2125 trillion during the same period. The number of IPOs decreased by 15 compared to the previous year, but the total amount raised increased by KRW 366.9 billion, or 19.8%, driven by the listing of LG CNS (KRW 1.1994 trillion raised).

In contrast, the Europe, Middle East, and Africa (EMEA) region saw IPO proceeds fall to $9.4 billion, a 45% decrease from the same period last year, due to macroeconomic slowdown and policy uncertainty. However, volatility eased toward the end of the second quarter (April to June), showing a gradual recovery trend. Notably, Flynas, a Saudi Arabian low-cost carrier, became the first Gulf airline in about 20 years to successfully complete an IPO, and a Swedish medical solutions company raised $888 million, with these large listings helping to support the market.

The top 10 global IPOs in the first half of this year were evenly distributed across five countries: the United States, India, Japan, Saudi Arabia, and Sweden, accounting for a total of $13.5 billion, or 23% of all IPO proceeds. By industry, large IPOs took place in a variety of sectors, including finance, technology, energy, healthcare, and metals. Technology companies, in particular, accounted for four of the top 10 IPOs, showing a recovery trend. The financial sector raised $18.3 billion, or 31% of the total amount, mainly due to the surge in SPAC IPOs in the United States.

The report analyzed that "following the U.S. tariff announcement in early April, major indices temporarily fell by about 10% and the volatility index (VIX) surpassed pandemic levels, causing a brief market contraction. However, in the second quarter, progress in trade negotiations and expectations of interest rate cuts led to a market rebound." The MSCI World Index ended the first half up 9%, the S&P 500 Index rose 5%, and both the Stoxx 600 Index in Europe and the FTSE 100 Index in the UK climbed 7% each, marking a recovery.

Looking ahead to the second half of this year and beyond, the report projected further recovery potential for the global IPO market. It stated, "While macroeconomic conditions and geopolitical instability continue to weigh on equity markets, companies that had postponed IPOs are now likely to attempt listings in the second half, as the positive market sentiment and timing for capital recovery coincide."

Kim Girok, Global IPO Services Leader (Partner) at Samil PwC, commented, "The global IPO market showed signs of recovery in the first half of this year compared to the previous period, but uncertainty and volatility remain high. Although the recovery is expected to continue in the second half, companies preparing for IPOs should focus on risk management and flexible strategies in response to the global macroeconomic environment."