The worldwide IPO market had a significant reversal in 2022 following a record-breaking 2021. Only 1,333 IPOs raised US$179.5 billion, a 45% and 61% decrease in deals and proceeds, respectively, from the previous year (YOY). We didn’t see as many huge IPOs emerge in 2022 since the average deal size decreased as a result of decreased valuation and subpar stock market performance. The EY Global IPO Trends 2022 report included these conclusions as well as others.

Along with the poor performance of many IPOs that had been listed since 2021, heightened market volatility and other negative market conditions had an impact on worldwide IPO activity throughout 2022. Investors have shunned new public companies and shifted to less risky asset classes in an environment marked by increased inflation and rising interest rates. Similar to this, financial-sponsored IPO activity saw a sharp decline in both number and proceeds of 77% and 93%, respectively. Nearing the end of their two-year window, the majority of special purpose acquisition companies (SPACs) listed after late 2020 must now decide whether to select a target for a merger or return the IPO proceeds to their investors. Even if these figures show a sharp fall from 2021, pre-pandemic 2019 worldwide IPO agreements nevertheless showed a 16% gain in terms of number.

Source: Prnewswire