The upsized USD 2bn listing of Delivery Hero SE’s [ETR:DHER] Talabat Holding plc has injected much-needed impetus into technology IPOs, following a turbulent year for the sector.

The IPO, which priced last week, attracted significant interest from Gulf Cooperation Council (GCC) countries and international investors, reflecting confidence in the company’s equity story and its sector positioning, an ECM lawyer said.

Tech IPO volumes reached USD 4.4bn in 2024 YTD, with the majority of the volumes made up of Talabat’s listing, slightly up from USD 3.1bn last year and USD 3.2bn in 2023, according to Dealogic data.

Tech stocks have experienced volatility this year. The NASDAQ 100 Technology Sector index surged from 9,287 on 1 January 2024 to 11,223 by mid-July, only to drop back to 9,288 in August amid concerns over a soft US economic landing, which led to a widespread stock sell-off led by Nvidia [NASDAQ:NVDA] and Microsoft [NASDAQ: MSFT].

The election of Donald Trump and better-than-expected US economic performance have spurred a rally, with the index rebounding to 10,919 as of 5 December.

The rallies in tech stocks have not, however, translated into a flurry of IPOs.

“Many people confuse supply and demand, but the issue lies in a dislocation of businesses coming to market, as few tech companies are looking to float this year – not due to valuations, but simply because the timing isn’t right,” an ECM banker said.

Technology ECM volumes overall have been stagnant year-on-year, with USD 14.7bn reported in 2024 YTD, which is slightly up from USD 14.6bn last year and USD 12.8bn in 2022.

While volumes are still off the peaks of 2020 and 2021, with issuance of USD 61.5bn and USD 60.5bn respectively, the volumes over the last three years have been steadily rising.

Follow-ons have been relatively stable over the last three years, with volumes between USD 8.2bn to USD 8.6bn. Meanwhile, convertibles have recovered somewhat from USD 900m in 2022 to USD 2.1bn in 2024 YTD.

The success of Talabat’s IPO highlights the growing investor interest in tech-focused companies again. With tech stocks poised to benefit from favourable macroeconomic trends, the pipeline for future deals in 2025 could see a more robust flow, provided market conditions remain supportive.