Year of Shifting Sands: Reflections on the 2024 Global IPO Market

By Mike Tang, CFA, CPA, Grace Yeung, CFA, CPA and Phoebe Chan

Posted In: Drivers of Value, Economics, Equity Investments, Investment Topics, Philosophy

As we settle into a new year, the global initial public offering (IPO) landscape presents a fascinating tapestry of challenges and opportunities. The year 2024 was marked by geopolitical uncertainties, macroeconomic headwinds, and evolving regulatory frameworks, all of which have reshaped the investment terrain.

In a recent fireside chat, industry experts Mike Tang, CFA, CPA, and Grace Yeung, CFA, CPA delved into the key trends that defined the IPO market last year. From the impressive growth in the Americas and EMEIA (Europe, Middle East, India, and Africa) regions to the surprising ascent of the National Stock Exchange of India, the dynamics of global capital flows are shifting, the conversation — facilitated by Phoebe Chan — revealed.

The year of 2024 presented a mixed bag of challenges and opportunities. Tang and Yeung discussed several key trends and observations during their fireside chat.

Globally, the total capital raised through IPOs in 2024 reached $119.1 billion, a 10% decline from the previous year. The number of listings also contracted, falling from 1,371 in 2023 to 1,159 in 2024. While the overall market experienced a downturn, a closer look reveals a more nuanced picture.

Excluding Mainland China’s A-share market, global IPO fundraising experienced an uptick, driven primarily by robust activities in the Americas and the EMEIA region, with both recording impressive growth rates of approximately 50% and 40%, respectively. This divergence suggests a potential recalibration of global capital flows, with investors seeking opportunities beyond traditional markets.

A standout development in 2024 that surprised both Tang and Yeung was the National Stock Exchange of India (NSE) ascending to the top of the global IPO rankings, having raised $17.3 billion. This remarkable climb reflects India’s burgeoning economy, recent capital market reforms that have successfully attracted foreign investment, and a growing trend of multinational corporations spinning off their Indian subsidiaries. Hyundai’s $3.3 billion IPO of its Indian operations exemplifies this trend, underscoring India’s growing importance as a hub for multinational operations, Tang and Yeung agreed.

Meanwhile, Nasdaq and the New York Stock Exchange (NYSE) solidified their positions in the global rankings, demonstrating the enduring appeal of the US capital markets. Nasdaq benefited from the year’s largest IPO, Lineage Inc., which raised $5.1 billion. The exchange’s total fundraising reached $16.5 billion, up from $12.5 billion in 2023. Driven by access to deep capital pools, the resurgence of Chinese companies seeking US listings also contributed to activities on US exchanges — with 61 Chinese firms going public in the US in 2024, compared to 36 in 2023.

Focusing on Chinese firms, the Shanghai and Shenzhen stock exchanges, which led the global IPO market in 2023, saw fundraising plummet in 2024 due to China Securities Regulatory Commission’s (CSRC) periodic tightening of new listings. According to Tang, this policy shift indirectly benefited the Hong Kong market as Chinese companies sought alternative listing venues.

The Hong Kong Stock Exchange (HKEX) made a notable comeback in 2024, climbing back into the top five global rankings. With 63 new listings, including many from Mainland China, the HKEX raised HK$82.9 billion, an 80% surge from 2023. Midea’s landmark HK$35.7 billion IPO, the second largest globally, was a key contributor to this rebound.

The HKEX’s ongoing efforts to enhance its market attractiveness, including a recent consultation on IPO price discovery and open market requirements, demonstrate its commitment to continued growth. CFA Institute and CFA Society Hong Kong contributed to the consultation process, and we will provide a more detailed analysis of these proposed changes and their implications in a future article.

Navigating today’s dynamic global IPO market presents both exciting opportunities and inherent risks. While there is the potential for lucrative returns, investors should approach new listings with a discerning eye. Thorough due diligence is essential, including a comprehensive analysis of a company’s financial health, competitive positioning, and growth trajectory – carefully weighing the allure of potential rewards with the inherent uncertainties that accompany early-stage ventures.

Regulators play a critical role in fostering market stability and investor confidence. Rapidly developing markets like India, where the NSE has recently seen remarkable growth, call for a robust regulatory framework. This includes not only clear listing requirements and transparent disclosure practices, but also effective enforcement mechanisms to ensure market fairness and investor protection.

The 2024 IPO market was defined by its dynamism. Exchange rankings shifted dramatically, with the rise of the NSE, the continued dominance of US exchanges, and the rebound of Hong Kong all telling a story of evolving market forces. This evolving landscape will continue to require both investors and regulators to remain vigilant, adaptable, and informed to capitalize on opportunities while mitigating risks.

It is essential to approach new listings with a discerning eye. Thorough due diligence, including a comprehensive analysis of a company’s financial health, competitive positioning, and growth trajectory, is crucial. By carefully weighing the allure of potential rewards against the inherent uncertainties of early-stage ventures, investors can make informed decisions.

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All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.

Image credit: ©Getty Images / Ascent / PKS Media Inc.

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About the Author(s)

Mike Tang, CFA, CPA

Mike Tang, CFA, CPA, is an audit partner at KPMG China specializing in leading capital market engagements. His areas of expertise include initial public offerings (IPO), mergers and acquisitions, financial restructuring, debt financing, spin-off listings, and SPAC. He is a practising CPA with work experience across different cities in the Greater Bay Area (GBA), serving clients in technology, biotech, real estate, and consumer markets. He has a strong presence in media, with publications and interviews on diversified topics, including IPOs, corporate governance, and climate changes. He is also a regular speaker at seminars, forums and panel discussions, sharing insights on capital market trends and hot topics.

Grace Yeung, CFA, CPA

Grace Yeung, CFA, CPA, is senior director, Exam Development, Asia Pacific of CFA Institute. Yeung plays a global role and she leads the development and production of CFA Exams and other CFA Institute Credentialing products. Her team consists of more than 150 consultants and staff worldwide. She is responsible for developing strategies and driving projects of the CFA Program and the Exam and the mission of CFA Institute. One of Yeung’s key projects is transitioning the CFA Exam from paper-based to computer-based. With her background and professional experiences in Asia Pacific, Yeung outreaches to CFA Societies, professional standard setting bodies, practitioners and credentialing organizations in the region to seek insights and develop strategies that are relevant to the CFA Program and the Exam. She has more than 20 years of global experiences in the financial services and investment management industry. Prior to joining CFA Institute, she held the position of senior manager, Assurance, Financial Services and Asset Management of PwC Hong Kong. Her clients include global and regional asset managers in traditional and alternative investment spaces, hedge funds, private equity, venture capital, real estate and infrastructure. She led assurance and consulting projects including investment fund set-up, regulatory licensing and internal control compliance. Grace had assurance, consulting and financial services working experiences in United States and Canada. Yeung holds a master of economics degree from University of California at Berkeley and a master of laws, corporate and financial laws degree from University of Hong Kong. She graduated summa cum laude with a bachelor of science degree, distinction in Management Science, and Phi Beta Kappa from University of California, San Diego. She is a CFA charterholder, a Certified Public Accountant licensed with California, a Chartered Professional Accountant of Canada, and a Certified Public Accountant (Practising) at Hong Kong SAR. She is a member of the Task Force for Digitalization of the Qualification Programme under the Qualification and Examinations Board of the Hong Kong Institute of Certified Public Accountants. She is also an active participant in the accounting standards roundtable panel of the HKICPA.

Phoebe Chan

Phoebe Chan is a research specialist at CFA Institute, based in London. She conducts research on the formation and resilience of capital markets. In her advocacy role, Chan promotes policy initiatives aimed at enhancing investor protection and market integrity. She holds an MPhil in Engineering and a bachelor's degree in Economics and Finance from The University of Hong Kong.