Revealing the 2nd quarter of 2022 (2Q22) the listing of initial public offerings (IPOs) around the world is moving slowly thus affecting transactions and revenue.
This was presented by EY Initial Public Offering Services (EY) stating that geopolitical issues, macroeconomic factors, deterioration in valuation and post -IPO share price performance caused the listing delay.
Commenting further, the dramatic slowdown in IPO activity in the year to date (YTD) 2022 was experienced by most major markets.
Looking at the data released for 2Q22, the global IPO market exhibited 305 transactions totaling $ 40.6 billion in revenue however it was down by 54% and 65% year -on -year.
For YTD 2022, a total of 630 IPOs raised $ 95.4 billion, a decrease of 46% and 58% year -on -year.
In addition, the 10 largest IPOs raised $ 40 billion with the energy sector leading 3 of the top 4 offerings, replacing the technology sector that has so far dominated.
Speaking of the technology sector, the average IPO size of the industry is seen declining from $ 293 million to $ 137 million.
On the other hand, the energy sector grew from $ 191 million to $ 680 million year -over -year.
Meanwhile, EY also confirmed that the IPOs of special purpose acquisition companies (SPACs) declined compared to traditional IPOs despite the new market joining it.
It is detailed that regulatory uncertainty and increased redemptions have challenged SPACs the majority of which face potential expiration this year.
Nonetheless, market performance and regulatory clarity could be drivers of transaction flows in the future.
The good news behind this is that the Asia-Pacific market performance is said to be better by EY, as it has benefited from YTD’s 2 largest global IPOs.
The Asia-Pacific market ended the quarter with a 42% decline in revenue while deals fell just 37%.
It saw 181 IPOs raise $ 23.3 billion in 2Q22 and 367 IPOs reach $ 66 billion for YTD 2022.
