USA and Europe Save IPO Year 2024 – Switzerland with One of the Largest IPOs of the Year

Read in German, read in French

• Full-year 2024 balance: Number of global IPOs down 10 percent compared to the previous year, volume 4 percent lower
• Regional shift in IPO activity – declines in Asia and gains in Europe and the USA
• Three of the ten largest global IPOs of the year from Europe
• A traditional IPO in Switzerland made it into the top 5 worldwide, accompanied by a successful spin-off IPO in the fourth quarter of 2024

Zurich, 18 December 2024 – The current IPO barometer from the auditing and consulting firm EY shows: Even in the fourth quarter of 2024, the global IPO market was characterized by very divergent developments: Overall, only 343 companies went public worldwide in Q4 – 7 percent less than in the same quarter of the previous year 2023 (368). However, the issuance volume increased by 70 percent to 43 billion US dollars. For the full year, a similar picture emerges: The number of IPOs worldwide fell by 10 percent to 1215 (2023: 1351), and the issuance volume shrank by 4 percent to around 121.2 billion US dollars. "In 2024, IPO markets developed differently worldwide: While significantly more capital was invested in IPOs in Europe and the USA, activities in Asia declined significantly. Interest rate cuts by Western central banks and rising stock markets had a positive impact, while de-globalization trends in Asia burdened the markets there," says Tobias Meyer, Head of Transaction Accounting and IPO Services at EY Switzerland.

International Markets in Comparison

• The US market grew significantly in 2024 with 183 transactions (2023: 127), and the total volume increased from 22.2 billion to 32.7 billion US dollars.
• The development in Europe was also positive, where the number of transactions slightly decreased to 125 (2023: 148), but the issuance volume increased to 19.1 billion US dollars (plus 41 percent; 2023: 13.5 billion).
• In China (including Hong Kong), 170 new issues (2023: 387) were counted with a total value of 19.8 billion US dollars (2023: 57.2 billion) – a decrease of 65 percent, the largest decline among all relevant stock exchanges.
• Looking at the sectors, technology companies continued to dominate, closely followed by firms from the advanced manufacturing sector. The former accounted for 211 IPOs with an issuance volume of nearly 23.6 billion US dollars, the latter for 174 IPOs with a volume of 9.2 billion US dollars.
• In 2024, the share of IPOs from companies in the portfolios of private equity and venture capital funds worldwide was 12 percent of all IPOs and 46 percent of the placement volume.

Tobias Meyer says with a view to the global markets: "The current 'Santa Claus Rally' in many markets and the currently low volatility are positive signs for the IPO year 2025. The announced deregulation in the USA and efficiency gains through the adoption of artificial intelligence should further boost the US market, while the announced trade tariffs could prove to be a burden."

Switzerland with Only One Traditional IPO This Year – Successful Return of Sunrise to the Swiss Stock Exchange in the Fourth Quarter

The only traditional IPO in Switzerland was that of Galderma in March this year. Globally, the Galderma IPO ranks fifth with a volume of around 2.6 billion US dollars. Larger IPOs this year were only in the USA with Lineage Inc (5.1 billion US dollars), China with Midea Group (4.6 billion US dollars), India with Hyundai Motor India (3.3 billion US dollars), and Spain with Puig Brands (2.9 billion US dollars). Additionally, Sunrise returned to the Swiss stock exchange SIX in November after a four-year absence through a spin-off from its parent company Liberty Global and started trading with a market capitalization of around 3.5 billion US dollars.

Tobias Meyer comments on the situation in Switzerland: "A significant reduction in the key interest rate by 0.5 percentage points in December by the Swiss National Bank in response to decreased inflationary pressure is encouraging for a revival of the capital markets in 2025. Negative interest rates, although undesirable, could become an issue again in the future to counteract a strong Swiss franc and deflationary risks."

About the global EY organization

The global EY organization is a leader in assurance, tax, transaction and advisory services. We leverage our experience, knowledge and services to help build trust and confidence in the capital markets and in economies all over the world. We are ideally equipped for this task — with well trained employees, strong teams, excellent services and outstanding client relations. Our global purpose is to drive progress and make a difference by building a better working world — for our people, for our clients and for our communities.

The global EY organization refers to all member firms of Ernst & Young Global Limited (EYG). Each EYG member firm is a separate legal entity and has no liability for another such entity’s acts or omissions. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. For more information about our organization, please visit ey.com.

EY’s organization is represented in Switzerland by Ernst & Young Ltd, Basel, with 10 offices across Switzerland, and in Liechtenstein by Ernst & Young AG, Vaduz. In this publication, “EY” and “we” refer to Ernst & Young Ltd, Basel, a member firm of Ernst & Young Global Limited.