World Federation of Exchanges research highlights liquidity, GDP growth and listing-rule flexibility as drivers of IPO activity

The World Federation of Exchanges published a research paper analysing how exchange-level, macroeconomic and regulatory factors influence initial public offering activity across 79 stock exchanges from 2002 to 2024, using a new Listing Stringency Index to measure the breadth of listing requirements. The study finds that market liquidity and GDP growth are the most consistent drivers of IPO frequency, while more stringent listing regimes are associated with larger IPOs rather than more frequent listings. The analysis indicates that financial system development tends to increase IPO size without necessarily increasing the number of new listings, and that sensitivities differ by market type: advanced economies show greater exposure to volatility and macro conditions, while emerging markets benefit most from liquidity enhancements, financial development and economic growth. It also finds that exchanges that relaxed listing rules over time saw significant increases in IPO participation and total capital raised, suggesting that easing overly restrictive requirements can expand access to public markets if transparency and governance standards are maintained; the 2020–2022 pandemic-era IPO surge is characterised as sharp but short-lived and not a break from longer-run fundamentals.