European IPO Market Roars Back to Life: A Promising Start to 2024

The IPO market has made a strong comeback in 2024, marking its best start since the 2021 boom. High-profile transactions involving companies like Galderma, Douglas, Puig, and CVC have revived market activity, promising a robust year ahead.

In the first quarter alone, Europe's IPO scene saw nearly €5 billion raised, as per S&P Global Market Intelligence. Private equity (PE)-backed IPOs have been particularly influential, comprising three of the top five listings. This trend, along with a diverse and healthy pipeline, signals sustained recovery for the year.

The recovery drivers include stable macroeconomic conditions, declining energy costs, and improved investor confidence. The stabilization of equity markets has provided a window for more PE-backed IPOs, as firms seek to unlock value from mature investments.

Globally, IPO activities show regional variations. While Europe's market reopens, Asia-Pacific saw a 48% drop in IPO values. Still, India's stock market thrived with $2 billion in Q1 IPOs. The Middle East also showed growth by focusing on diverse industries.

Prospects for Western IPO markets look optimistic through 2024 and into 2025, supported by a strong pipeline and lower market volatility. However, geopolitical uncertainties and upcoming elections could impact this optimism. The London IPO market is particularly poised for change, with significant reforms aimed at increasing its attractiveness.