IPO Revival Likely to Continue into Mid-2025

When we introduced the Nasdaq IPO Pulse a year ago, we said it suggested that U.S. “IPO activity… should remain in an uptrend” as we headed into 2024. 

Then, when we introduced the Nasdaq Stockholm IPO Pulse in September, we wrote that it “suggests [Stockholm] IPO activity… is likely to remain in an uptrend in the coming months.”

And now, it looks like our IPO Pulses were right!

2024 was a year of recovery for IPO activity in the U.S. and Stockholm

Following the earlier upturns in our U.S. and Stockholm IPO Pulses, actual IPO activity also recovered – in both the U.S. and Stockholm – in 2024.

According to Nasdaq’s data, the U.S. saw 179 non-SPAC IPOs in 2024 – the most since 2021, and a 40% increase over 2023 (127). By value raised (ex SPACs), it was an even better year, with value raised increasing over 50% from 2023 to $30 billion – also the most since 2021.

Plus, the year ended strong, with Q4 having the most non-SPAC IPOs in a quarter (53) in three years.

Sweden saw a more than 60% jump in IPOs in 2024 (23) compared to 2023 (14 IPOs). Sweden also closed the year strong, with Q4 having the most IPOs in a quarter (10) in 2½ years.

U.S. led global IPOs, followed by Asia, while some major markets lagged

Not only did the U.S. have a strong year for IPOs when compared to recent years, but also when compared to the rest of the world.

According to FactSet data (including SPACs), the U.S. had over 250 IPOs in 2024. 

After the U.S., the list was dominated by Asian (and Emerging) Markets, which took 12 of the top 14 spots. 

European markets rounded out the top 20 in the chart (Sweden took 15th place), but there are some major European economies missing from this list, including France and the Netherlands, which both fell outside the top 20.

Chart 1: U.S. leads global IPO activity in 2024, followed by Asian markets

Since most countries have very different sized economies and stock markets, it’s a little unfair to compare countries by a simple count of IPOs. 

A “fairer” comparison is to look at the percentage increase in listings due to IPOs in each country. We show that in the grey circles. By that measure, 11 countries – including the U.S. (5%) – were clustered in the 4%-6% range. The clear winners in 2024 were Macedonia (14%) and Saudi Arabia (12%). While China, Australia and the U.K. scored the lowest.

Nasdaq IPO Pulse near high, indicating continued uptrend in U.S. IPOs

Even though 2024 was the best year for U.S. IPOs in three years, some commenters think 2025 will be an even better year. Right now, the cyclical drivers of future IPO activity captured by the Nasdaq IPO Pulse look pretty supportive. 

While the IPO Pulse ticked down in December, it’s just off October’s 3¼-year high, suggesting U.S. IPO activity should remain in an uptrend into mid-year.

Chart 2: The Nasdaq IPO Pulse suggests IPO activity will hold up into mid-2025 

Nasdaq Stockholm IPO Pulse off its high, but not yet signaling a downturn

For Stockholm, the IPO Pulse upturn has faded, but is not yet at the point that it’s clearly indicating a downturn is ahead.

The Nasdaq Stockholm IPO Pulse was in an unambiguous upturn through the first half of 2024, reaching a 2½-year high in June (chart below, blue line). Since then, it’s come off that high, but it remained above October’s eight-month low in December.

Chart 3: The Stockholm IPO Pulse sees a continued upturn in IPO activity into the spring 

Given this recent softening, we can test whether it’s truly signaling a downturn in IPO activity by comparing it to its past downturns. That’s because most of those past downturns genuinely anticipated downtrends in IPO activity, while a couple were false alarms.

Fortunately, based on that comparison, this recent slowing currently looks slightly more similar to historical false alarms, so the Stockholm IPO Pulse is not yet conclusively indicating a directional shift in IPO activity.

That means we should expect Stockholm IPO activity to stay in an uptrend for now, but our next update in April should help clarify whether a near-term downturn is likely.

U.S. and Stockholm IPO Activity likely to stay in uptrends into Q2 2025

2024 was a year of recovery for IPO activity in the U.S. and Stockholm. And based on our IPO Pulses, IPO activity looks likely to stay in an uptrend into mid-year – especially in the U.S.

Of course, a lot can change over the course of a year, so we’ll be updating our Nasdaq IPO Pulses each quarter to see if these uptrends will continue beyond mid-year, or if a directional shift lies ahead.