The New
York Stock Exchange (NYSE) has once again emerged as the global leader in
initial public offering (IPO) proceeds for the first half of 2024, raising $12
billion as the IPO market shows signs of recovery after two sluggish years.
New York confirms
its growing advantage over London, which has struggled to compete for major
debuts in recent years to the extent that UK companies prefer choosing
Wall Street over Paternoster Square.
The Big
Board, owned by Intercontinental Exchange Inc. (NYSE: ICE), hosted seven of the
ten largest US transactions in the period, including the two biggest IPOs:
Viking Holdings (NYSE: VIK) and Amer Sports (NYSE: AS). The exchange also saw a
resurgence in technology listings, with notable debuts from Rubrik (NYSE:
RBRK), Reddit (NYSE: RDDT), and Ibotta (NYSE: IBTA).
“We
welcomed a reopening of the IPO window in the first six months of 2024,
allowing companies from around the globe and across the economy to tap the
public markets following two somewhat subdued years for new issuance,”
said Michael Harris, Global Head of Capital Markets at the NYSE.
The
exchange’s strong performance in 2024 marks a significant turnaround, with IPO
proceeds already surpassing the total raised in the past two years.
This uptick suggests a renewed appetite for public offerings among both
companies and investors.
International
firms continued to choose the NYSE as their listing venue, with Dublin-based
Flutter Entertainment (NYSE: FLUT), operator of FanDuel, moving its primary
listing to the exchange. The NYSE also maintained its lead in attracting
companies transferring from other exchanges, with five firms making the switch
in the first half, including Virtus Investment Partners (NYSE: VRTS) and Kforce
(NYSE: KFRC).
“In this
environment, companies overwhelmingly chose the NYSE to list their shares, and
the proceeds raised from their IPOs far outpaced the rest of the industry. As
we move into the second half of the year, we look forward to welcoming many
more leading companies to our unparalleled NYSE community,” Harris added.
Corporate
spinoffs further expanded the NYSE community, with General Electric splitting
into GE Aerospace (NYSE: GE) and GE Vernova (NYSE: GEV), while 3M spun off its
healthcare business as Solventum (NYSE: SOLV). These new entities represent a
combined market value of $140 billion.
London Falls Behind
As New York
enters 2024 with a strong performance in IPOs, its biggest competitor, London,
is falling behind. Finance Magnates reported a few months ago that Marex
Group, a UK-based financial services platform, joined the ranks of companies
that chose to list not on the native LSE, but in the United States, hoping for
greater capital potential, liquidity , and investor interest. This move has
added Marex to the growing list of UK-based firms seeking to go public in the
US market.
In 2023,
the US dominated the IPO market, attracting the largest number of
offerings in the Western world. Meanwhile, in London, IPOs fell by 36% over the
same period. After a record year for London in 2021, where over $20 billion was
raised through IPOs, the following two years saw drastic declines. These were
so significant that the UK’s IPO market did not exceed $1 billion last year.
The latest
EY study for Q1 2024 showed that the IPO market in London has rebounded, with
three listings raising £283.8 million. However, this is still significantly
less than in the US.
The New
York Stock Exchange (NYSE) has once again emerged as the global leader in
initial public offering (IPO) proceeds for the first half of 2024, raising $12
billion as the IPO market shows signs of recovery after two sluggish years.
New York confirms
its growing advantage over London, which has struggled to compete for major
debuts in recent years to the extent that UK companies prefer choosing
Wall Street over Paternoster Square.
The Big
Board, owned by Intercontinental Exchange Inc. (NYSE: ICE), hosted seven of the
ten largest US transactions in the period, including the two biggest IPOs:
Viking Holdings (NYSE: VIK) and Amer Sports (NYSE: AS). The exchange also saw a
resurgence in technology listings, with notable debuts from Rubrik (NYSE:
RBRK), Reddit (NYSE: RDDT), and Ibotta (NYSE: IBTA).
“We
welcomed a reopening of the IPO window in the first six months of 2024,
allowing companies from around the globe and across the economy to tap the
public markets following two somewhat subdued years for new issuance,”
said Michael Harris, Global Head of Capital Markets at the NYSE.
The
exchange’s strong performance in 2024 marks a significant turnaround, with IPO
proceeds already surpassing the total raised in the past two years.
This uptick suggests a renewed appetite for public offerings among both
companies and investors.
International
firms continued to choose the NYSE as their listing venue, with Dublin-based
Flutter Entertainment (NYSE: FLUT), operator of FanDuel, moving its primary
listing to the exchange. The NYSE also maintained its lead in attracting
companies transferring from other exchanges, with five firms making the switch
in the first half, including Virtus Investment Partners (NYSE: VRTS) and Kforce
(NYSE: KFRC).
“In this
environment, companies overwhelmingly chose the NYSE to list their shares, and
the proceeds raised from their IPOs far outpaced the rest of the industry. As
we move into the second half of the year, we look forward to welcoming many
more leading companies to our unparalleled NYSE community,” Harris added.
Corporate
spinoffs further expanded the NYSE community, with General Electric splitting
into GE Aerospace (NYSE: GE) and GE Vernova (NYSE: GEV), while 3M spun off its
healthcare business as Solventum (NYSE: SOLV). These new entities represent a
combined market value of $140 billion.
London Falls Behind
As New York
enters 2024 with a strong performance in IPOs, its biggest competitor, London,
is falling behind. Finance Magnates reported a few months ago that Marex
Group, a UK-based financial services platform, joined the ranks of companies
that chose to list not on the native LSE, but in the United States, hoping for
greater capital potential, liquidity , and investor interest. This move has
added Marex to the growing list of UK-based firms seeking to go public in the
US market.
In 2023,
the US dominated the IPO market, attracting the largest number of
offerings in the Western world. Meanwhile, in London, IPOs fell by 36% over the
same period. After a record year for London in 2021, where over $20 billion was
raised through IPOs, the following two years saw drastic declines. These were
so significant that the UK’s IPO market did not exceed $1 billion last year.
The latest
EY study for Q1 2024 showed that the IPO market in London has rebounded, with
three listings raising £283.8 million. However, this is still significantly
less than in the US.
