Amid a global economic slowdown, market volatility, geopolitical shifts and monetary easing, the global IPO market in the third quarter has shown signs of cautious optimism. Despite a 14% decrease in year-over-year volumes to 310 IPOs and a 35% increase in proceeds to $24.9 billion, the third quarter of 2024 outpaced the first two quarters in terms of launches, according to recent research.

Despite these challenges, the Americas and EMEIA were resilient in the first three quarters of 2024, with EMEIA’s IPO proceeds up by 45% compared to the same period last year, helping to mitigate the global market’s overall downturn, according to the EY Global IPO Trends Q3 2024 report.

“The persistently lower private equity and venture capital (PE and VC) exit activity over recent years has created a growing backlog of portfolio companies poised for monetization,” the report noted.

“A resurgence in PE-backed mega IPOs and VC-backed unicorns is taking shape, as current valuation levels become more favorable for launching mature, high-value portfolio companies into the public market.”

Additionally, there has been a substantial increase in cross-border listings. 77 companies elected to list abroad in the first three quarters of this year, a 20% increase from the 64 that did so during the same period last year. According to the research, foreign-domiciled issuers have accounted for approximately 52% of IPOs on US exchanges since 2023, a 20-year high.

“Investors are gearing up for a more volatile second half of 2024. As inflation and interest rates recede, other emerging factors are taking precedence in influencing IPO decisions. In this environment of heightened uncertainty, well-timed market entries and compelling equity narratives are crucial for businesses looking to capitalize on IPO opportunities,” said George Chan, EY Global IPO Leader.