822 IPOs globally aimed to raise US$ 65 billion till August; India tops APAC tally

The primary market is experiencing a revival, attracting domestic and international investors. A recent report by GlobalData reveals that 822 Initial Public Offerings (IPOs) are expected to raise US$ 65 billion in the first eight months of calendar year 2024 (CY24) through August, reflecting a 17.4% increase from the previous year when 1,564 listings aimed for US$ 55.4 billion. Investors are shifting their focus towards larger, more valuable IPOs globally despite a decrease in total listings. The report highlights a growing emphasis on newly listed companies' financial sustainability and profitability, indicating a more discerning investor approach amid tighter monetary conditions and ongoing market uncertainties. In the Asia-Pacific (APAC) region, India led 227 transactions worth US$ 12.2 billion, primarily due to a higher number of small and medium enterprises (SMEs) participating in the market.

According to Mr. Murthy Grandhi, a company profiles analyst at GlobalData, 2024 has seen increased IPO activity as macroeconomic conditions stabilize, alongside a resurgence in private equity and venture capital-backed listings. The technology and communications sectors led global IPO activity with 135 transactions valued at US$ 6.4 billion, followed by financial services at US$ 11.6 billion and construction at US$ 3.9 billion. Looking ahead, the IPO market will be shaped by factors such as shifts in monetary policy, geopolitical developments, and changing investor preferences. Companies with strong financial fundamentals and sustainable growth strategies will be better positioned to attract capital. In India, notable companies like Hyundai Motor India, Swiggy, Hexaware Technologies, NTPC Green Energy, Afcons Infrastructure, Tata Play, and Vishal Mega Mart plan to raise nearly US$ 7.17 billion (Rs. 60,000 crore) through IPOs in the coming months.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.