In 2024, Korea raised a total of $2.9 billion through 75 initial public offerings (IPOs), but the revenue recorded a negative (-) 4.7%.
On the 6th, global accounting and consulting firm Ernst & Young Han Young published the '2024 EY Global IPO Trends Report' and noted that Korea's IPO count decreased by 5% compared to the previous year, while the amount raised increased by 2%. This places Korea 4th in the global IPO market by count and 12th by amount raised. The revenue was only -4.7%.
In the global IPO market in 2024, a total of 1,215 IPOs were realized, marking approximately a 10% decrease compared to 1,351 in 2023. Additionally, the total amount raised was $12.12 billion, down 4% from the previous year's $12.61 billion. The second half showed recovery compared to the first half, especially the fourth quarter, which surpassed the previous first to third quarters, indicating strong performance.
India ranked first in the world in terms of IPO count for the first time in 2024, with approximately twice as many corporations newly listed compared to the U.S. and 2.5 times more than Europe. The U.S. regained its position as the world's leader in IPO funding following a peak in 2021. Among U.S. listed corporations in 2024, 55% were foreign issuers, setting a record high.
Examining regional IPO trends, the Europe, Middle East, India, and Africa (EMEIA) region raised $53.2 billion through 522 IPOs, leading both in count and scale. Six of the top 10 IPOs occurred in the EMEIA region. The Americas showed a strong recovery, raising $33.1 billion through 205 IPOs, the highest activity level since 2021. The Asia-Pacific region continued its decline from 2021, with a 35% decrease in count and a 51% decrease in amount raised compared to the previous year; however, the second half improved compared to the first half.
Mainland China recorded its lowest performance in a decade due to tightening regulations. However, in terms of revenue, it ranked first with 123.9%. Australia saw its steepest decline in over 20 years, while Malaysia achieved its highest number of IPOs in 19 years due to increased interest in corporate value and liquidity.
In the 2024 global IPO market, corporations that received investment from private equity (PE) and venture capital (VC) accounted for 46% of the total amount raised, reaffirming the importance of PE and VC. Twelve of the 20 mega IPOs listed in 2024 received PE funding, a significant increase from two in the previous year. Additionally, 18 unicorn corporations successfully went public, half of which received VC investment, drastically increasing from three in 2023.
In particular, IPOs related to AI showed a significant increase. Currently, there are over 600 AI and AI-related corporations listed. More than half of these have gone public with VC support over the past four years, solving funding issues while promoting innovation and growth. Additionally, over 60 AI corporations are in the process of going public, with more than 400 corporations in the pipeline.
An Ernst & Young Han Young official explained, "Investor interest in AI-based innovation and continued VC support indicate that successful IPOs in the AI industry will provide market momentum that drives IPO activation in other high-growth sectors."
Political factors and outlooks are also key variables. Historically, IPO activity tends to increase regardless of which party wins following a U.S. presidential election. Uncertainty exists ahead of elections, but immediately after, policy directions and economic initiatives become clearer, stabilizing market sentiment and creating a more favorable environment for IPOs. In the year following an election, sectors such as industrial goods, technology, media and telecommunications, and finance tend to lead, although nearly all sectors show growth.
Amid mega trends reshaping the global IPO market due to changes in fiscal and monetary policy, geopolitical tensions, global supply chains, AI and digital innovation, and the influence of the new U.S. government, the report projected that the IPO market in 2025 would record solid performance thanks to improvements in the economic environment, monetary policy easing, liquidity, and valuation levels.
Park Jung-ik, head of the audit division at Ernst & Young Han Young, noted, "The global IPO market, which has been sluggish for a while, is gradually showing signs of recovery, and it is anticipated that corporations with strong pipelines across various sectors will seize new market opportunities in 2025."
He added regarding the Korean market, "The 2025 Korean IPO market will be greatly influenced by domestic and foreign political issues and economic conditions. In the short term, concerns exist over capital outflows and stock price volatility, and in the long term, there could be negative impacts on the IPO market due to the government's ongoing value-up program." He said, "In this context of uncertainty, market resilience will be a key factor determining the level of IPO activity."