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Laxman Pai, Opalesque Asia: After a record-breaking 2021, the global IPO market took a sharp turn in the opposite direction in 2022. With only 1,333 IPOs raising US$179.5b, IPO activity dipped 45% and 61% by number of deals and proceeds, respectively, year-over-year (YOY), said a study by EY.
According to another independent study by S&P Global, the number of companies that launched initial public offerings in 2022 fell by nearly half from the blistering pace set a year earlier.
There were 1,671 IPOs launched worldwide in 2022, compared to 3,260 in 2021. The total amount offered in those IPOs in 2022 fell to $179.73 billion, from $626.56 billion in 2021, said S&P Global Market Intelligence data. The dismal performances in equities throughout 2022, aggressive rate hikes from central banks, and fears of a looming global recession all stymied activity in public markets.
As the average deal size shrank due to lowered valuation and poor stock market performance, bourses around the world saw fewer large IPOs launched in 2022.
"Throughout 2022, global IPO activity was impacted by increased market volatility and other unfavorable market conditions, along with the dismal performance of many IPOs that had been listed since 2021. Amid an environment defined by higher inflation and rising interest rates, investors have spurned new public companies and turned to less risky asset classes," said EY.
Similarly, financial-sponsored IPO activity took a steep fall of 77% and ...................... To view our full article Click here
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