The nine months of 2022 saw a dramatic slowdown in global IPO activity after a record year in 2021.
According to data presented by Trading Platforms, global IPO activity slumped by 73% year-over-year, with the total value of deals reaching just over $116bn.
Total Value of Deals 40% Lower than in Q1 2021
As the global IPO momentum continues to slow down, the number of deals and the value of proceeds has dipped across most major markets. Increased market volatility caused by the Russia-Ukraine war and macroeconomic factors, dropping valuation and poor post-IPO share price performance led to a delay of many IPOs since the beginning of the year.
In Q1 2022 the value of IPO deals dropped by 73% YoY to $54.4bn, according to the Wall Street Journal and Dealogic data. The second quarter saw $37.3bn worth of IPO deals or 72% less than a year ago. The global IPO activity continued slowing down over the past three months, with the total value of deals reaching $24.7bn by mid-September.
Statistics show the total value of IPO deals in the nine months amounted to $116.2bn, or 40% less than in Q1 2021 only, the record quarter for IPO activity.
IPO Activity in Europe and US Plunged by 90% YoY
Statistics show that almost all markets witnessed a double-digit drop in IPO activity this year. US companies raised $14.2bn through IPOs in nine months, or 93% less than in the same period a year ago. Europe also witnessed a dramatic slowdown, with the value of all deals plunging by 91% YoY to $6.4bn.
Asia saw $78.8bn worth of IPO deals in nine months, 37% less than a year ago. Japan`s IPO activity slumped by 80% YoY to $700 million. The Middle East and Africa were the only regions witnessing a surging IPO activity, with the combined value of deals up by 101% to $14.1bn.
Analyzed by industry, statistics show that finance companies raised $17.5bn in IPOs year-to-date or one-eight of the value seen in the same period a year ago. The technology sector saw $28bn worth of IPOs, showing a 75% YoY drop.
The combined value of IPOs in the healthcare sector reached $10.9bn, compared to $47.2bn a year ago. Auto/truck and chemicals sectors follow, with $12.3bn, and $9bn worth of IPOs, respectively.