Sam-il PwC "IPO Market Recovery This Year... Diversification Needed in Listing Strategies"

PwC, 'Global IPO Performance and Outlook' Report
"Macroeconomic Stability and Increased Recovery Demand Forecast Recovery"

Last year, the scale of paid-in capital increases expanded due to the recovery of the capital market. This year, Initial Public Offering (IPO) market is expected to recover due to macroeconomic stability, stock price increases, and rising demand for investment exit.

Annual Scale of Initial Public Offerings (IPO) and Paid-in Capital Increases (FO) [Data Provided by Samil PwC]

On the 29th, Samil PwC announced this based on the recently published report "Global IPO Performance and 2024 Outlook."

According to the analysis, the number and scale of global IPOs decreased compared to the previous year. In particular, the Chinese market slowed down. On the other hand, the IPO markets in the Middle East, India, and Indonesia were strong. Especially, India ranked 3rd in the world in terms of IPO issuance amount and surpassed Hong Kong's market capitalization in November last year. By industry, the computer and electronics sector ranked first since 2021 with $34.4 billion. Healthcare ($10.7 billion) and finance ($9.6 billion) sectors followed.

The stock price trends of companies listed last year were also found to be more robust compared to companies listed in 2022. The scale of additional paid-in capital increases after listing rose from $338 billion in 2022 to $381.4 billion last year.

The report forecasted the global IPO market this year, stating, "The necessary conditions in the economic environment for market activation are being met, but social instability could act as a variable."

It added, "The stabilization of the global macroeconomic environment, rising stock indices, and increased demand for investors' investment exit will act as positive factors," but also explained, "Geopolitical uncertainties that still linger and the election results of major countries throughout this year could determine the direction of the IPO market."

Hong Jun-gi, leader of Samil PwC's Overseas Listing Advisory Services, said, "Although there are various variables that influence the capital market, investors still look for potential companies with feasible growth strategies, profitability, and cash-generating capabilities. Thorough preparation for listing and having multiple listing options according to variables is also a good strategy."

This content was produced with the assistance of AI translation services.