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Global IPO highlights in Q4 2024 and tips for future IPO candidates

5 minute read 23 Jan 2025

Read about IPO activities in Q4 of 2024 and learn more about how to prepare for enhanced reporting requirements when going public.

In brief

Global IPOs decreased overall in 2024, with Europe/USA up but Asia down. Private Equity and Venture Capital account for nearly half of the placement volume.
Companies must understand and comply with exchange rules on financial reporting, event disclosure and transparency to avoid compliance issues.
IPO candidates should strengthen financial reporting and implement robust internal controls to prepare for enhanced audit requirements.

The EY Q4 2024 IPO barometer reveals a 10% decline in the number of initial public offering (IPOs) and a 4% decrease in issuance volume in Q4 2024 compared to 2023.

Global IPOs

The number of companies that went public in Q4 2024.

Q4 2024 IPO barometer

Behind the overall decrease were regional shifts, with declines in Asia not fully compensated by gains in Europe and the US. Europe hosted three of the ten largest global IPOs, including a significant IPO in Switzerland. In Q4 2024, 343 companies went public worldwide – a 7% decrease from Q4 2023 – but the issuance volume increased by 70% to USD 43 billion. For the full year, 1’215 IPOs raised around USD 121.2 billion.

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The US market grew, with 183 IPOs and USD 32.7 billion raised, while Europe saw a slight decrease in the number transactions but a 41% increase in volume to USD 19.1 billion. China experienced the largest decline, with the number of IPOs dropping to 170 and the volume decreasing by 65% to USD 19.8 billion. Technology and advanced manufacturing sectors dominated the IPO landscape.

Private equity and venture capital-backed IPOs accounted for 12% of all IPOs and 46% of the placement volume. Positive signs for 2025 include a “Santa Claus rally” and low volatility, with potential boosts from US deregulation and AI adoption, though trade tariffs could pose challenges.

Top 5

Transaction size (in USD) of Galderma IPO in Switzerland.

Switzerland had only one traditional IPO, Galderma, ranking fifth globally with a transaction size of USD 2.6 billion. Sunrise returned to the Swiss stock exchange via a spin-off, with a market capitalization of USD 3.5 billion. A 0.5 percentage point interest rate cut by the Swiss National Bank in December is expected to revive capital markets in 2025.

Preparing for increased reporting requirements when going public

Going public is a significant milestone for any company, but it comes with a host of new responsibilities, particularly in terms of reporting requirements. Candidates need to ensure that they are well prepared and may benefit from external support in assessing readiness and developing a roadmap toward the target structure across eight key areas:

Understanding regulatory requirements

The first step in preparing for enhanced reporting requirements is to thoroughly understand the regulatory landscape. There are more than 100 stock exchanges and listing options worldwide which need to be analyzed.

SIX Swiss Exchange has specific rules and guidelines that companies must adhere to, including requirements on periodic financial reporting, disclosure of significant events and maintaining transparency with investors. Companies considering an IPO should familiarize themselves with these before going public in order to avoid compliance issues further down the line.

Strengthening financial reporting

Accurate and comprehensive financial reporting is crucial for public companies. In Switzerland they have to report in accordance with International Financial Reporting Standards (IFRS), US Generally Accepted Accounting Principles (US GAAP) or Swiss reporting standards (Swiss GAAP FER / Standard according to Banking Act). In this context, it is important to implement robust internal controls and audit processes to ensure the accuracy and reliability of financial data.

A structured approach can help you meet regulatory requirements – and stakeholder expectations. Based on our experience gained during many IPO projects, the following five steps can help set you up for success:

Your finance and accounting teams play a critical role in meeting reporting requirements. Ensure they are well-trained in public company reporting standards and regulations. Continuous professional development and training programs can help them stay updated with the latest industry practices and regulatory changes.
Strong corporate governance is essential for maintaining investor confidence. Establish a competent board of directors and an audit committee to oversee financial reporting and compliance. You should also implement best practices in corporate governance, such as clear roles and responsibilities, regular board meetings, and transparent decision-making processes.
Upgrading your financial reporting systems can significantly enhance your ability to meet higher reporting requirements. Invest in advanced software solutions that can handle increased data volumes and provide real-time reporting capabilities. Also look into automating routine tasks to improve efficiency and reduce the risk of errors.
Transparent and regular communication with investors, analysts and other stakeholders is crucial for maintaining trust and confidence. Provide timely updates on financial performance, significant events and strategic initiatives. We recommend using various communication channels, such as press releases, investor presentations and annual reports, to keep stakeholders informed.
Working with experienced advisors can give you valuable insights and guidance throughout the IPO process. Legal, financial and accounting advisors with expertise in public company reporting can help you navigate the complexities of regulatory compliance and ensure that you meet all necessary requirements.

Summary

To take advantage of a potential IPO window, companies need to prepare for higher reporting requirements when going public which requires careful planning and execution. By understanding regulatory requirements, strengthening financial reporting, enhancing governance structures, investing in technology, training staff, maintaining transparent communication with stakeholders and engaging external advisors, companies can effectively navigate the challenges and ensure a successful – and compliant – transition to becoming a publicly listed entity.

Acknowledgements

We kindly thank Marc Ledermann and Ken Brandstetter for their valuable contribution to this article.

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