IPO activity grows in first half of 2024

Listing activity on the London Stock Exchange saw an improvement in the first half of 2024, thanks to eight new companies raising £513.8m in total. Whilst the total proceeds raised in H1 2024 is slightly down on the £593.2m raised in H1 2023, IPO activity is still growing after record lows in Q4 2023. In Q2, five companies listed between April and June raised £225m. The largest listing on the main market in Q2 was Raspberry Pi Holdings plc which raised £172.9m, whilst AOTI Inc was the largest AIM listing, raising £35.1m. Scott McCubbin, EY UKI IPO leader, said: “The London stock market is steadily gaining momentum after a challenging two years stifled by macroeconomic and geopolitical uncertainty. The forthcoming UK election outcome is expected to provide businesses with much-needed regulatory and policy clarity. “Additionally, proposed revisions to simplify the UK listing regime to attract more start-ups are set to take effect later this month. These reforms have been broadly well-received by the market and will enhance the UK’s appeal as a global listing destination.” McCubbin continued: “This renewed sense of optimism, combined with a robust pipeline of companies planning to list, will strengthen market confidence in Europe's largest stock market. We expect a resurgence in IPO activity in the latter half of 2024 and early 2025.” Meanwhile, global IPO volumes fell 12% in the first half of 2024 with proceeds also falling by 16% YOY. In total, 551 IPOs raised $52.2bn (£40.9bn) in H1 2024. The fall in listing activity is mainly due to a slowdown in Asia-Pacific IPO activity, with the Americas and EMEIA seeing robust growth in H1. In the Americas, there were 86 IPOs with proceeds of $17.8bn (£13.9bn), an increase of 12% and 67% respectively YOY, whilst the EMEIA region experienced a rebound in H1 2024, achieving its highest global share by number since the 2008 global financial crisis. India also experienced a significant surge, accounting for 27% (152) of global IPOs by deal volume, up from 13% (81) in the same period in 2023. The Asia-Pacific region saw a 43% decline in the volume of listings and a 73% fall in proceeds raised YOY in H1 2024. Market sentiment in the region has been dampened by a combination of geopolitical tensions, elections, economic slowdown, heightened interest rates and a drought in market liquidity, which has led to investor caution. Policymakers in China have also set higher requirements on IPOs to improve the strength and the scale of companies choosing to go public. Debbie O’Hanlon, EY UKI private leader, said: “The second half of 2024 is likely to be shaped by several factors including the central banks’ interest rate cut schedules, escalating geopolitical tensions and, of the course, the election super-cycle with many countries globally preparing to vote this year. “Some companies might choose to delay their offerings to avoid the uncertain impact of election results on market stability and investor confidence, and instead choose to wait for more stable conditions. It's critical that companies considering IPOs demonstrate increased flexibility to make well-informed strategic decisions in the ever-changing IPO landscape.”