In 2022, the volume of IPOs in the U.S. and Europe fell by 90%.
Since the beginning of the year, the U.S. and European IPO volume has declined by 90%, the Financial Times reported citing Dealogic data.
Only 157 companies in the first 5 months of 2022 were able to place shares on the stock exchange, raising $ 17.9 billion, although for the same period last year 628 companies raised $ 192 billion.
Experts interviewed by the newspaper believe that the reasons for this decline are rising inflation and interest rates. In addition, many companies were not prepared for market volatility and the threat of a global recession.
The total volume of placements worldwide was $81 billion, down 71% from last year’s $283 billion and the number of listed companies fell from 1237 to 596.
However, deal organizers noted that high energy prices made IPOs a more favorable option for oil and gas companies to raise capital.
Experts speculate that some IPOs planned this year will be postponed until 2023 to wait for better conditions.
