European IPO issuance posts strongest Q1 since 2021 signalling market recovery for the year ahead

• Strongest European Q1 IPO performance since record breaking 2021

• Global IPO proceeds down year-on-year, but cautious optimism remains for recovery 

Proceeds raised from European IPOs in the first quarter of 2024 quadrupled year-on-year making it the strongest Q1 since the record breaking 2021, raising confidence that the IPO market will stage a recovery, according to figures from PwC’s latest IPO Watch EMEA. 

In Q1 2024 there were 13 IPOs in Europe raising €4.8bn, an increase of €3.6bn from the same period last year that saw €1.2bn raised from 10 IPOs. Activity has also increased from the last quarter - Q4 2023, which saw €1.1bn raised from 16 listings. Notable IPOs from the first quarter of the year include the €2.0bn IPO of skincare company Galderma on the SIX Swiss Exchange, the €889m IPO of consumer company Douglas on the Deutsche Borse and the €742m IPO of Athen International Airport on the Athens Stock Exchange. 

The London IPO market

The first quarter of the year saw the proceeds raised from IPOs on the London Stock Exchange increase to £0.3bn from £0.1bn in Q1 2023. However, a strong pipeline and regulatory changes aimed at increasing the attractiveness of listings are due to come into effect this year. Q1 2024 also saw significant secondary market transactions, including the £1.9bn offering of LSEG shares, comprising a placing and a directed buyback, indicating robust demand for quality stocks on the LSE.

The Middle East and African IPO markets

The Middle East saw proceeds raised from IPOs in Q1 2024 fall by $2.7bn to $1.4bn compared with $4.1bn in Q1 2023. However, the pipeline for the remainder of the year remains strong across the region. The region has seen a shift away from oil and gas to other industries reflecting a maturing market with the Consumer staples and Industrials sectors accounting for two thirds of IPO proceeds raised in the region in Q1 2024.

The African IPO market has continued to be subdued in Q1 2024 with no IPOs in the region. Whilst IPO activity has been muted due to macroeconomic challenges, there are ongoing initiatives across the region aimed at improving the efficiency of the capital markets and attracting prospective issuers.

The Global IPO market

From a global perspective, Q1 2024 has seen activity in the US and Europe, offset by the slowdown in Chinese Mainland and Hong Kong SAR. Global IPO activity in Q1 2024 totalled $22bn from 212 IPOs constituting a 6% ($1.3bn) reduction in value compared to the same period in 2023. The decline in proceeds was driven by the Asia Pacific region which saw proceeds down to $7.6bn in the first quarter of the year from $14.6bn in Q1 2023. Despite this, the pipeline for global IPOs is still strong and Western markets are expected to drive activity through the remainder of the year.

Three of the top five global IPOs were in EMEA- Galderma, Douglas and Athens International Airport. The two remaining largest were listed on the New York Stock Exchange which were Amer Sports $1.37bn IPO and the IPO of social media platform Reddit for $748m.

Kat Kravtsov, Capital Markets Director at PwC UK, said:

“Recent European IPO activity and largely positive aftermarket performance suggest we are entering a recovery phase of the IPO market. Diversified pipeline, strong market performance and low volatility continue to support a second half weighted IPO window with quality and valuation driving the investment decision. ​

“EMEA as a whole has seen a promising start to the year, further encouraging optimism around the market and with the macroeconomic outlook looking more positive, the environment for companies with their sights on launching a European IPO later in the year is largely positive.”

Vhernie Manickavasagar, Capital Markets Partner at PwC UK, added,

“The first quarter of 2024 has seen a resurgence in the European IPO market with almost €5bn worth of IPOs by value compared to just over €1bn during the same period last year, marking the strongest start to a year since the IPO boom in 2021. 

“This has been driven by an uptick in private equity backed IPOs in Q1 2024 with three of the top five IPOs in EMEA being PE backed.  As PE groups move to take advantage of improving market conditions to return capital to their funders, the pipeline of PE backed IPOs for 2024 looks healthy.”

Ends.

Notes to editors

The market data on IPO Watch EMEA is derived from data provided under Licence by S&P Global Market Intelligence LLC. S&P Global Market Intelligence LLC retains and reserves all rights in such Licenced data. The data has not been independently verified by PwC.

To read the full report, visit the IPO Watch EMEA webpage.