European IPO momentum sees funding quadruple in 2024

New research from PwC suggests Europe’s market for initial public offerings has continued to heat through 2024. Looking ahead, the study also foresees a strong pipeline for deals in the back-end of the year.

The global initial public offering (IPO) market endured something of a meltdown in 2022, and struggled throughout 2023. But after two difficult years, new research suggests that the market is finally entering a period of healthy growth once more – especially in Europe.

According to a paper from PwC, the proceeds raised from European IPOs in the first half of 2024 have more than quadrupled compared to the same period last year. This represents over 25% of the total proceeds raised globally, continuing the positive trajectory of the IPO market this year.

The figures from PwC’s latest ‘IPO Watch EMEA’ suggest that the second quarter indicate that the momentum is holding, too. The three months leading to 2024’s half-way point saw 23 IPOs in Europe raise €6.6 billion, an increase of €5.3 billion compared to the same period in 2023. This was also an increase of €1.8 billion compared to the first quarter of 2024, which totalled €4.8 billion.

With total IPO proceeds in Europe for 2024’s first half hitting €11.4 billion, is higher than both the same period of 2023 and 2022 combined. That added up to €7.6 billion.

Kat Kravtsov, capital markets director at PwC UK, commented, “The EMEA IPO market delivered an impressive level of H1 issuance, as the IPO market in Europe bounced back with a number of sizeable IPOs testing the strength of the recovery. Largely positive aftermarket performance of the European IPOs provides further momentum for deal flow in the second half of the year and beyond, whilst investors continue to navigate short-term market volatility amidst a complex economic and geopolitical landscape.”

While London’s apparent allure to investors is reported to still be high, IPO activity in the UK capital also seems to have been markedly hotter. For the first six months of 2024, the city saw over £500 million in proceeds raised which included the computer maker Raspberry PI raising £166 million. The wider UK meanwhile saw the largest secondary market transactions globally with the National Grid and Haleon further offers of £7 billion and £2.4 billion respectively.

Looking ahead, PwC also asserts that there is a strong pipeline of potential IPOs also remains. Adding to this, July 2024 saw new listing rules published by the FCA as part of the overall package of planned reforms aimed at reinvigorating the IPO market in London. 

Vhernie Manickavasagar, capital markets partner at PwC UK, added, “The IPO pipeline appears healthy well into 2025, indicating sustained recovery is underway. Companies are preparing early so they are ‘IPO ready’ and able to take advantage of favourable listing conditions once the uncertainties presented by the elections taking place across the globe this year are settled.”