India dominates IPO race globally with 220 issues in 2024 so far

In a remarkable performance, India dominated the global IPO (initial public offering) market, with 227 issues totalling $12.2 billion in the first eight months of 2024, primarily due to a higher number of SME IPOs. In the APAC region, India leads the IPO activity, followed by China, South Korea and Japan.

The Indian market saw a surge in both the SME and mainboard IPO segments till August this year, supported by strong demand from retail investors and institutions, reveals data and analytics company GlobalData.

Globally, the U.S. came in second in the number of deals with 133 deals worth $23.1 billion, while China ranked third with 69 transactions worth $5.3 billion. China’s IPO market, dwindled 8% in deals, affected by both structural and cyclical constraints.

Globally, while the number of IPOs declined in the first eight months of 2024, the total deal value saw a significant surge. A total of 822 IPOs were registered with an aggregate deal value of $65 billion globally, reflecting a 17.4% rise in value compared to the $55.4 billion from 1,564 listings during the same period in 2023, GlobalData’s Deals Database shows. "This indicates a shift towards larger, more valuable IPOs despite the reduced number of listings.”

Murthy Grandhi, company profiles analyst at GlobalData, says the IPO market underwent a significant uptick in activity in 2024 as macroeconomic conditions stabilised. "The Indian IPO market saw exceptional growth in the first eight months of 2024, with proceeds nearly tripling to $12.2 billion, compared to $4.3 billion during the same period in 2023. This significant increase highlights India’s strong capital market activity.”

In addition, a noticeable shift has been observed in investor focus over the past two years, with greater emphasis is being given to the financial sustainability and profitability of newly listed companies. "Companies planning for IPOs are increasingly prioritising revenue growth, profitability metrics, and sustainable business strategies," Grandhi says, adding that it reflects a broader trend towards long-term financial resilience and responsible growth.

Among the regions, the Asia-Pacific recorded the largest number of transactions, totalling 575, amounting to $23.7 billion in value, while North America had 149 deals valued at $25.4 billion.

Led by India, APAC saw a 15.6% growth in terms of IPO proceeds compared to the same period in 2023. Significant IPOs include HD Hyundai Marine Solution Co Ltd and Bharti Hexacom Ltd, with deal values of $540 million and $795 million, respectively.

South Korea and Japan registered impressive growth in their respective IPO markets, largely due to the liberalisation of trading rules, creating a more favourable environment for public listings. South Korea saw a remarkable 185.7% increase, with 60 IPOs raising a total of $1.2 billion, while Japan recorded a 48.5% rise, with 49 IPOs generating $1.6 billion.

In the coming months, the trajectory of the IPO market is expected to be influenced by factors such as shifts in monetary policy, geopolitical developments, and evolving investor preferences.