Stamo Hadjiyski is Co-Founder, Capital Markets Gateway (CMG).
What were the key theme(s) for your business in 2024?
Capital Markets Gateway (CMG) provides ECM data and workflow solutions for sell-side and buy-side firms. Our unique position serving underwriters and institutional investors enables us to deliver comprehensive solutions for the new issue market.
As market participants invest in capital markets technology, CMG has stayed ahead with innovative new products and strategic leadership additions in 2024. Most notably, RBC joined CMG’s global underwriter network as both a client and investor, and we appointed industry veteran Carlos Hernandez to our board of directors to add another experienced and insightful voice to company leadership.
In terms of broader ECM industry trends, a key theme in 2024 was the resurgence of IPO activity and improved market conditions, marking a shift toward recovery and renewed confidence. Throughout the year, we observed steady growth in both the number of companies going public and the capital raised, signaling healthier market dynamics compared to the previous two years.
A notable trend was the improvement in IPO pricing conditions against a more favorable demand backdrop. It reflects the increasing investor appetite for new opportunities and better alignment between company valuations and market sentiment. As a result, 2024 has been a transitional year—a story of steady rebuilding and preparation for future growth—quietly laying the groundwork for what could be a more robust and active IPO environment in the near future.
What was the highlight of 2024?
The highlight of 2024 has been improving IPO pricing conditions, on course for a breakout 2025 for overall activity. In addition, we have seen yearly declines in the percentage of IPOs pricing below the range, while a larger portion of IPOs have priced above range.
Average trading performance has also trended favorably (day 1, day 30 and current) for IPOs and 2024 saw increases in Cornerstone investments, in terms of both activity and capital raised.
Note that for this analysis, we have examined all IPOs (excluding SPACs) with gross proceeds over $50M.
Recent IPO Volume (2022-2024):
· 2024: 69 IPOs raising $32.7B
· 2023: 34 IPOs raising $20.5B
· 2022: 21 IPOs raising $7.6B
Key Takeaway: Strong growth as 2024 exceeded the prior two years combined, in both number and dollar volume, with increases in every quarter compared to 2023, signifying a healthy market throughout the year.
Percentage of IPOs Pricing Below Range:
· 2024: 18.84%
· 2023: 26.47%
· 2022: 28.57%
Percentage of IPOs Pricing Above Range:
· 2024: 20.29%
· 2023: 17.65%
· 2022: 4.76%
Trading Performance (Dollar-Weighted):
· Day 1: +15.15%
· Day 30: +19.33%
· Offer to Current: +43.27% (as of 12/17)
Cornerstone Investments:
· 2024: 21 IPOs ($3.4B volume)
· 2023: 13 IPOs ($2.5B volume)
· 2022: 5 IPOs ($669M volume)
What are your expectations for 2025?
We anticipate the IPO window will fully reopen next year. While a return to 2021’s peak activity is unlikely, more normalized 2019-level volumes are expected as pricing and performance trends improve.
Note that for this analysis, we have examined all IPOs (excluding SPACs) with gross proceeds over $50M.
Benchmarking to Peak IPO Activity (2019-2021):
· 2021: 319 IPOs raising $154.7B
· 2020: 186 IPOs raising $86.6B
· 2019: 134 IPOs raising $50.8B
Notable rumored IPOs for 2025 include Chime, Databricks, Discord, Hinge Health, Klarna, MNTN, Plaid, Skims, Solera, and StubHub.
