IPOs declining worldwide – Switzerland with fourth-largest IPO
Published: Thursday, Sep 26th 2024, 08:30
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Activity on the global IPO market decreased in the third quarter of 2024 compared to the same period of the previous year. And the figures are also down after nine months. In Switzerland, the Galderma IPO remains the only one this year.
In the traditionally quiet third quarter, 310 companies worldwide ventured onto the stock market, i.e. carried out a so-called IPO, according to the IPO Barometer published on Thursday by the auditing and consulting firm EY. This was 14 percent or 49 IPOs less than in the same period last year.
There was also a clear decline in the issue volume. This fell by 35% to 24.9 billion US dollars in the third quarter. After nine months, EY counts 870 IPOs (-11% compared to the previous year) with a placement volume of 77.6 billion dollars (-23%).
Growth in the USA
There were regional shifts on the IPO market in the first nine months of the year: While the USA recorded an increase in the number of IPOs, with 130 IPOs (+29% compared to the previous year) and an issue volume of USD 27.3 billion (+41%), China only achieved 120 IPOs (-62%) with a volume of USD 13.5 billion (-73%).
A total of 94 companies were listed on European stock exchanges (-12%) with a significantly higher issue volume of USD 15.4 billion (+42%). In terms of the various sectors, technology (USD 14.0 billion), health/life science (USD 11.9 billion) and industry (USD 11.7 billion) accounted for the largest shares.
In Switzerland, there was only one IPO. In March, the skincare group Galderma was listed on the SIX Swiss Exchange with an issue volume of just under CHF 2.3 billion. However, this corresponds roughly to the total volume of all ten IPOs in Switzerland in 2023, wrote EY.
In the current year, Galderma's IPO ranks fourth in the global ranking of the largest IPOs. Only the IPOs of Lineage in the USA (USD 5.1 billion), the Midea Group in China (USD 4.0 billion) and Puig Brands in Spain (USD 2.9 billion) were larger.
Difficult environment
2024 remains a challenging year for IPOs, notes Tobias Meyer, Head of Transaction Accounting and IPO Services at EY Switzerland, in the press release. The mood will be determined by ongoing geopolitical tensions, an uncertain economic outlook, the outcome of the US election and monetary easing.
Nevertheless, according to Meyer, there is reason for cautious optimism: "Well-known share indices are trading close to their all-time highs, the central banks in Europe and the USA have made their first interest rate cuts, inflation rates are also falling steadily in many countries and volatility levels generally remain low."
©Keystone/SDA
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