The number of IPOs worldwide decreased by 10% in 2024, falling to 1,215, while the issuance volume shrank by 4% to approximately 121 billion dollars. This decline was primarily driven by a slowdown in Asia. In contrast, Europe saw a positive trend. While the total number of IPOs slightly declined to 125, the issuance volume increased by 41% to 19.1 billion dollars. These figures are based on data from the consulting firm EY, which supports many companies in preparing for IPOs.

„We expect up to ten IPOs in Germany in 2025“, says Martin Steinbach, Partner and Head of IPO and Listing Services at EY. This would represent a doubling compared to the current year, during which the perfume retailer Douglas, the academic publisher Springer Nature, and the tank transmission systems manufacturer Renk were the three largest of only seven IPOs in Germany, generating less than 2 billion euros in total proceeds.

The world’s largest IPO of the year was the US cold storage operator Lineage, which raised approximately 5.1 billion dollars in July. Europe’s largest IPO of the year occurred in May, when Spanish cosmetics group Puig Brands debuted with 2.9 billion dollars raised.

Private equity firms want to streamline their portfolios by divesting older company holdings, enabling them to make returns to investors. This is one reason why bankers and consultants believe that the upward trend in IPOs in Europe will continue in 2025, despite looming trade conflicts. In 2024, companies from private equity and venture capital portfolios accounted for 12% of all IPOs globally, and 46% of the total issuance volume.

An example of the anticipated trend toward IPOs from private equity portfolios is the planned stock market debut of generic drugmaker Stada, which is owned by Bain and Cinven. Previously, the two unsuccessfully attempted to sell the heavily indebted company, based in Bad Vilbel, for up to 10 billion euros to private equity firms Clayton Dubilier & Rice or GTCR. Preparations for Stada’s „intention to float“ at the beginning of the year are well advanced.

Recently, Deutsche Bank and Goldman Sachs were added as global coordinators, joining J.P. Morgan Chase and Morgan Stanley, which are leading the IPO effort.

According to consulting firm Kirchhoff, other potential debutants in 2025 include the energy start-up 1Komma5 and Berlin-based fintech Raisin. Experts at the law firm Cleary Gottlieb Steen & Hamilton also highlight Stada, Thyssenkrupp Marine Systems, and the defence company KNDS as potential candidates. In addition, an IPO currently seems to be the more likely option for the planned exit of the federal government from the gas trader Uniper. A debut for the German power grid business of Dutch operator TenneT is also seen as a possibility.

„IPO markets in 2024 developed very differently – while significantly more funds flowed into IPOs in Europe and the US, activity in Asia dropped sharply“, notes EY expert Steinbach. „In this sense, the IPO markets once again reflect global macroeconomic trends.“ The interest rate cuts by Western central banks, and rising stock markets, had a procyclical effect, in contrast to deglobalisation trends, which negatively impacted the Asian markets.

A series of elections in major economies also contributed to investor caution, particularly the US election in the fourth quarter. „Overall, the pipeline remains well-filled“, states Steinbach. The key factors for a successful IPO in 2025 will continue to be timing, considering the potential for value creation post-IPO, capital market sentiment, and balanced pricing expectations from existing owners.