Indian IPO market set for record growth in 2025, dominates Asia Pacific in 2024: Report

2024 was a record year for India’s initial public offerings (IPO) market as over 200 companies raised an astounding $11.2 billion via IPOs, more than double the $5.5 billion raised in 2023, according to a GlobalData report dated December 27.

Further, the country is set for an even bigger IPO boom in 2025, driven by galloping retail participation, hefty domestic inflows and “FPIs flexing their muscles despite being net sellers in the secondary market”, commented Murthy Gandhi, the Company Profiles Analyst at GlobalData.

“This blockbuster year reflects issuer confidence and investors’ insatiable appetite for listing-day pops and long-term growth plays,” Gandhi added.

India dominated Asia-Pacific IPO market in 2024

The Asia-Pacific region (APAC) topped the global IPOs list, with an impressive 604 listings raising a total of $33.9 billion in the current calendar year, representing a 21.5% growth in terms of IPO proceeds in comparison to 2023.

India dominated the APAC IPO market with 214 companies going public, driven primarily by a higher number of Small and Medium Enterprises (SME) IPOs, the report noted.

“Surging private capital expenditure and the government’s laser focus on infrastructure and core sectors added the perfect recipe for capital market dynamism. India’s IPO boom is more than just a numbers game—it’s a testament to the resilience and evolution of its financial ecosystem, positioning it as a global hotspot for fundraising action,” Gandhi said.

Japan and Malaysia also saw notable growth in their IPO markets. Japan recorded an astounding 275.1% growth, with 69 IPOs raising a sum of $12.6 billion, while Malaysia witnessed an incredible 145.9% increase, as 36 IPOs generated $1.1 billion, the report highlighted.

On the other hand, China reported a steep decline of 51.3% in the number of IPOs, impacted by tightening regulations. Furthermore, it saw the launch of 64 IPOs which raised just over $5.2 billion.

Tech and communication industries topped APAC IPOs

The APAC IPO landscape was helmed by technology and communication firms, with 118 transactions amounting to a total of $3.8 billion, followed by financial services, which recorded 60 deals with an overall value of $2.6 billion, the report stated.

Some of the biggest IPOs in APAC in 2024 include Lineage Inc. and Tokyo Metro with issue sizes of $4.4 billion and $3.2 billion, respectively.

“GlobalData predicts 2025 IPO activity to surpass that recorded in 2024, driven by a robust pipeline. However, the outlook will hinge on key factors such as the trajectory of Fed rate decisions and the performance of other emerging markets,” Gandhi said.

“Investors are also closely watching China’s economic stimulus measures, which are expected to increase exposure to mainland equities. While uncertainties remain about the effectiveness of these policies, the implementation of stimulus initiatives signals China’s intent to reinvigorate its economy and boost market activity. With these dynamics in play, 2025 holds strong potential for growth, contingent on global and regional economic developments,” Gandhi concluded.