Global IPO Trends

Written by Dr. Ishak Demir, Economist at the WFE

The growth in Initial Public Offerings (IPOs) is one of the key indicators of economic vitality and of equity market dynamics. In this note, we examine the global IPO activity, measured by the number of new listings and the capital raised through IPOs, over the period from 2006 to 2023, focusing on global and regional trends.

Global trends in IPOs

The global IPO landscape reveals notable fluctuations over the period considered (see Figures 1 and 2). In 2007, the number of new IPO listings surged, reflecting robust economic growth and market confidence preceding the 2008 global financial crisis. This growth was followed by a sharp decline of new listings during the crisis due to heightened economic uncertainties. Post-crisis, IPO activity resumed its upward trajectory, spurred by accommodative monetary policies and technological innovations. The recovery was uneven, with peaks corresponding to economic booms, such as the post-2010 rebound and the rise in tech-focused IPOs in the early 2020s. Notably, 2021 was a record-breaking year for IPO activity, with 2,766 global new listings raising $508.9 billion-an 80% increase value compared to 2020. This unprecedented growth was fuelled by strong stock markets, investors’ appetite for yield, and the continued momentum from the post-pandemic recovery.

However, IPO activity declined sharply in subsequent years. There were 1263 IPOs worldwide in 2023, well below the peaks of 2021. These offerings only raised an aggregate of $117.9 billion-the lowest in the last decade. This decline may have been influenced by stricter financial conditions, global political tensions, and economic challenges, although definitive evidence is limited.

Breaking down IPO activity using the IMF countries’ economic classification reveals a persistent dominance of advanced economies in both the number of listings and the capital raised. These economies, characterised by mature financial markets and robust regulatory frameworks, have historically led global IPO activity. Emerging and developing economies have demonstrated substantial growth since 2010, highlighting their increasing role in global markets. This growth is particularly evident in countries like China, India, Poland and Indonesia, driven by economic growth and market liberalisation, experienced a notable rise in IPO activity. This upward trajectory signifies the growing capacity of emerging and developing economies to attract investment, facilitate public listings, and effectively counterbalance the long-standing dominance of advanced economies in the global IPO landscape.

Regional disparities

An analysis of IPO activity across regions shows pronounced regional disparities. North America and East Asia & Pacific consistently emerge as leaders in both the number of IPOs and the capital raised. The United States, as the dominant player in North America, continues to attract a substantial share of IPOs, supported by its deep capital markets and vibrant tech ecosystem. Meanwhile, East Asia & Pacific—spearheaded by China and its neighbouring economies—has solidified its position as a global IPO hub. This region alone accounted for 1,168 IPOs worth $173.9 billion in 2021. This upward trajectory reflects the region's increasing capacity to attract investment and facilitate public listings, providing a strong counterbalance to the dominance of advanced economies.

Regions such as Europe & Central Asia and the Middle East & North Africa exhibit moderate levels of activity, while Latin America & Caribbean and Sub-Saharan Africa lag behind. The subdued IPO activity in these regions could stem from smaller market sizes, economic challenges, and regulatory hurdles. Nevertheless, intermittent increases in regions like South Asia and Sub-Saharan Africa point to potential growth areas. While these spikes are not yet part of a sustained trend, they may indicate that these regions are gradually gaining visibility in the global IPO landscape.

Trends in capital raised through IPOs

The trends in capital raised through IPOs mirror the patterns observed in the number of new IPOs but provide additional insights into market dynamics. Advanced economies dominate capital raised, reflecting their ability to attract larger offerings and institutional investors. In 2021, global IPO proceeds soared to a record $508.9 billion, with technology companies leading the charge.

Emerging and developing economies have shown sporadic yet impactful spikes, indicating their growing capability to mobilise significant capital. For instance, East Asia & Pacific saw dramatic increases in capital raised post-2010, fuelled by market liberalisation and the proliferation of high-growth technology firms. Meanwhile, regions like Sub-Saharan Africa and South Asia—despite lower overall activity—have recorded occasional surges.

The road ahead

In conclusion, the analysis of IPO trends from 2006 to 2023 underscores the interconnectedness of global financial markets and the growing influence of emerging economies. While advanced economies continue to lead in absolute terms, the rising share of emerging and developing markets in IPO activity signals a broader diversification of equity markets. This trend is likely to continue as developing regions implement structural reforms, deepen their capital markets, and attract international investors.

Regions with historically low activity, such as Latin America & Caribbean and Sub-Saharan Africa, present untapped potential. Addressing regulatory inefficiencies, improving market access, and fostering economic stability could unlock significant growth in these markets.