April 19, 2023
IPOs: The Market is Still Pretty Grim
Audit Analytics recently blogged about the IPO market’s performance during the first quarter of 2023, and its assessment was pretty grim:
The initial public offering (IPO) market started off slow in the first quarter of 2023. In total, 46 IPOs raised a combined total of $3.1 billion during Q1. Q1 2023 did see an increase in both the number of IPOs and the proceeds raised compared to Q4 2022. However, compared to offerings completed in the first quarter in each of the last five years, Q1 2023 saw a substantial decrease in the total amount raised. Compared to Q1 2022, total proceeds dropped 72%, reflecting the market cool down since the hot streak seen throughout 2021 into 2022.
The blog says that the 35 traditional IPOs completed during the first quarter raised $2.3 billion, while 11 SPAC deals raised total proceeds of $797 million. If you’re looking for a silver lining in the data, the blog points out that the number of deals was higher than those recorded in the fourth quarter of 2022, which saw the second lowest number of listings recorded since the first quarter of 2016.
– John Jenkins