How have IPOs done in 2022?
Business
The IPO or Initial Public Offering is the process through which a private company offers shares of its stock to the public for the first time. An IPO allows a company to raise capital by selling ownership stakes in the company to investors. We could interpret an IPO indicates the company has outstanding goals to raise capital, as well as matching confidence to accomplish such goals. Therefore, a high number of IPOs can approximately indicate the good performance of the market. However, this was not the case last year. Since last year, the trend is to sell, instead of to buy.
There has been a significant drop in IPOs in the United States.
In 2021, there will be 908 IPOs, but in 2022, only 149. The drop in the number is a reflection of the poor performance of the market and the weakness of the equity market since this means the companies are hesitant to go public in a bearish stock market. The scenario has caused the Fed to take actions to battle the high inflation, but will likely continue because the market hasn’t turned to normality yet. Sell-off might still be the popular choice over IPOs.
Written by Joe Zhang
How have IPOs done in 2022?
