This year, the initial public offering (IPO) market is expected to gain momentum due to macroeconomic stability and a trend towards reducing regulations on capital issuance, with projections that the United States will lead the recovery.
On the 20th, according to Samil PwC, global consulting firm PwC recently published a report titled "Global IPO Watch 2024 and outlook for 2025."
According to the report, the total global IPO fundraising amount is expected to reach $105.6 billion (approximately 154 trillion won) in 2024, marking a 9% decrease from the previous year. The main reason cited is the contraction of IPO activities in China and Hong Kong. In contrast, the fundraising amounts in the United States and Europe increased by 57% and 105%, respectively, compared to the previous year, showing a clear recovery. The report evaluated this as "an achievement made despite uncertainties brought about by the U.S. presidential election and economic slowdowns in some European countries."
By industry, the consumer discretionary sector topped the list with $18.3 billion, followed by institutional sector (industrial) at $17.8 billion, financials at $15 billion, and essential consumer goods at $13.9 billion. Meanwhile, the information technology (IT) sector, which attracted the most funds until last year, saw a 59% decrease compared to the previous year despite some corporations' successful listings.
In the report, it was analyzed that "recent advancements in artificial intelligence (AI) have increased the value of both listed and unlisted tech corporations, demonstrating the current situation in which unlisted tech corporations can secure sufficient funds without going public."
The report forecasted that the global IPO market will become even more vibrant this year, with the United States leading the market recovery. Daniel Pertig, a partner at Samil PwC, noted, "The market environment is becoming favorable due to sustained interest rate cuts, policy predictability, and investor confidence, and more corporations that view AI as a driving force for long-term growth will enter the market." He also added, "The efforts of European exchanges and regulatory authorities to support IPOs and capital issuance through regulatory simplification will have a positive impact on the market."
Since 2003, Samil PwC has operated a dedicated cross-border IPO team based on its experience leading Korean corporations to list in the United States. The firm handles IPO operations in the U.S., Singapore, Hong Kong, and Europe, as well as the Korean IPO operations for overseas corporations.