EY – Global IPO Trends, 3Q 2023

In the third quarter of 2023, there has been a shift in investor appetite from growth to value as liquidity becomes tighter. Global IPO volumes have fallen by 5% in the first nine months of the year, with proceeds down by 32% compared to the previous year. Emerging markets have accounted for 77% of the global share by number and 75% by proceeds, indicating their significant contribution to the IPO market. The Americas have experienced clear growth, driven by large deals. Despite the overall decrease in IPO volumes and proceeds, market momentum is building. Q3 has witnessed an improvement in post-IPO share price performance compared to previous quarters. The global IPO market has been characterized by changing dynamics, including improved investor sentiment in major Western economies, the anticipation of high-profile US mega IPOs, a strong presence of emerging markets, and a cooling China IPO market. In the past decade, emerging markets have seen a notable increase in IPO numbers and proceeds, primarily due to their faster economic growth compared to developed countries. So far in 2023, emerging markets have accounted for a significant share of the global IPO market. Countries like Turkey, Romania, Indonesia, Malaysia, and India have embraced new entrants to the active IPO arena. In developed markets, the US has seen a higher number of larger deals, while Japan and Italy have contributed to the growth of smaller deals.