EY – Global Trends, 2023

The global IPO market in 2023 has seen some changes, with enthusiasm for IPOs high and smaller deals performing well in the after-market. Many governments are taking measures to boost IPO activity, particularly in high-growth economies. However, before monetary policy eases and geopolitical tensions stabilize, companies looking to go public should focus on building fundamentals and managing price expectations to make the most of the limited opportunities in 2024. The IPO market in 2023 has seen improved sentiment in Western markets, but this has been balanced out by a cool-down in China. Additionally, there has been an increase in small-cap deals in developing markets, while larger offerings in developed nations have had lackluster performance. Overall, IPO proceeds in 2023 are about a third lower than the previous year, although deal volumes have increased in the Americas and EMEIA regions. The moderation of inflation and potential interest rate cuts in 2024 could attract investors back to IPOs by improving liquidity and return outlooks. However, sustained geopolitical instability may undermine confidence. Looking ahead, the success of IPOs in the coming year will depend on the improvement of the macroeconomic backdrop, as companies eagerly await more favorable market conditions to widen the IPO windows.