Welcome to the fourth edition of Deloitte Ireland’s Equity Capital Markets (“ECM”) update, focusing on navigating the evolving global market dynamics and the latest regulatory developments. This edition provides an in-depth analysis of the performance of major European and Irish stock markets in the first half of 2024, alongside insights into the improving macroeconomic environment.

We also explore the implications of key reforms, including the new UK Listing Rules, and Euronext Dublin’s ongoing initiatives to stimulate IPO activity in Ireland.

Furthermore, this update features highlights from Deloitte’s latest Irish CFO Survey and an introduction to our enhanced IPO Scanner tool, designed to assess company readiness for going public in both European and U.S. markets.

Key Takeaways:
 

Resilient Equity Markets: Despite concerns over inflation, interest rates, and geopolitical instability, European stock markets rallied in the first half of 2024, with the major global indices posting gains between 5% and 18%. This market performance was underpinned by resilience in the technology and financial sectors, which benefited from advancements in AI technology and prevailing interest rate levels.

Improved ECM Activity: European equity capital markets saw a 20% year-on-year increase in activity, with volumes rising to €73.2 billion in the first half of 2024. IPO activity surged by 26% compared to the first half of 2023, driven by large Private Equity-backed deals. The average value of an IPO rose to €192 million, indicating a shift towards larger deals.

Positive Regulatory Reform: The UK introduced major Listing Rule reforms in July. These changes could benefit Irish companies, especially those with dual listings and for whom large scale M&A is key part of the growth strategy. Euronext Dublin is also working on new governance codes and consultations to attract more listings, along with the launch of new Access markets targeting smaller cap companies.

IPO Outlook for 2025:  IPO markets are expected to gain further momentum by 2025 as interest rates normalise and market conditions stabilise. Businesses are encouraged to start their planning for IPOs as early as possible and to be ready when a favourable listing window opens.

You can support your journey now by completing our easy to use IPO scanner - IPO Scanner. The Deloitte team are happy to field any questions or take any feedback you may have on the IPO scanner output.