New data published by the World Federation of Exchanges (WFE), the global industry group for exchanges and CCPs, shows the buoyancy of the Americas region, which continues to lead global markets, despite the lowest level of IPOs worldwide in the last 5 years.
- The number of IPOs globally fell to the lowest level in the last 5 years, driven by the APAC and EMEA regions, but the number of IPOs in the Americas increased.
- The Americas and APAC regions reached record trading volumes and market capitalisation, whilst EMEA declined across both indicators.
- The Americas region reached its highest market capitalisation in the last 5 years, driven mostly by gains in tech stocks.
- The funds raised through IPOs in the Americas and EMEA regions rose, 91% and 61% respectively.
- The capital raised globally through IPOs recorded a slight downtick on 2023, due mainly to the APAC region which raised the lowest amount in the last five years despite hosting the largest IPO globally, Midea Group.
- Though we saw fewer IPOs globally, the average size of an IPO increased by 7.6% compared to 2023, and the number of IPOs raising over USD$1bn more than doubled year on year. In 2023 these IPOs added USD$16.14bn to capital markets, whilst in 2024 they reached USD$36.40bn.
- The data shows that overall, the average trading size was at its lowest in the last 5 years, suggesting that more retail investors were active in the market. The Americas bucked this trend, recording its largest average trade size in the last 5 years.
Nandini Sukumar, CEO of the WFE commented: “Investors turn to public markets to finance the future. As we start 2025, it’s crucial for new Governments and policymakers worldwide to reaffirm their commitment to keeping these markets dynamic. We need to see policies that not only foster investment in transparent, well-regulated markets but also empower and encourage businesses to list and access essential capital for growth.”
Dr Pedro Gurrola-Perez, Head of Research at the WFE commented: “The data reflects the persistence of geopolitical tensions and uncertainty derived from elections. In 2024 we also saw substantive changes in monetary policy around the world. Looking ahead, geopolitical tensions will remain a key driver of capital markets, and determiner of business confidence, IPO activity, and investor sentiment. By the half year, the data should show the impact of US policy developments on market performance globally. Longer-term, the patterns we are starting to see in how technological advancements are impacting market composition and growth, could become starker.”
Key data points:
| Americas region | ||
| Indicator | 2024 | YoY |
| Domestic Market Capitalisation (USD millions) | 67,177,624.75 | 24.09% |
| Equity Value traded EOB (USD millions) | 80,581,117.17 | 15.12% |
| Number of IPOs | 218 | 52.45% |
| Capital raised through IPOs (USD millions) | 33,566.57 | 91.03% |
| Options Contracts Traded | 18,223,171,837 | 17.96% |
| Futures Contracts Traded | 13,377,019,190 | 9.37% |
| Asia-Pacific region | ||
| Indicator | 2024 | YoY |
| Domestic Market Capitalisation (USD millions) | 37,722,050.97 | 10.32% |
| Equity Value traded EOB (USD millions) | 58,597,709.08 | 20.66% |
| Number of IPOs | 750 | -14.97% |
| Capital raised through IPOs (USD millions) | 50,232.88 | -34.24% |
| Options Contracts Traded | 134,048,623,104 | 53.53% |
| Futures Contracts Traded | 8,615,378,213 | -6.32% |
| Europe Middle East and Africa region | ||
| Indicator | 2024 | YoY |
| Domestic Market Capitalisation (USD millions) | 20,811,904.10 | -7.55% |
| Equity Value traded EOB (USD millions) | 9,603,218.84 | -6.87% |
| Number of IPOs | 165 | -19.12% |
| Capital raised through IPOs (USD millions) | 24,562.75 | 61.20% |
| Options Contracts Traded | 1,025,674,260 | 0.23% |
| Futures Contracts Traded | 4,926,816,256 | 5.86% |
The full paper can be read here.
Source: WFE
