July 20, 2023
US IPOs on the Rise
In April, John blogged about some pretty dismal data on the IPO market in the first quarter of this year. Fortunately, data from the first half of the year shows improvement, but the year-over-year swings are massive. Here’s an excerpt from this article on CFO Dive:
U.S. initial public offerings during the first half of 2023 raised $8.8 billion, an 87% jump compared with the same period last year but only about one-tenth the $84.2 billion surge in IPO proceeds during the first six months of 2021, EY said. During the first half of last year, U.S. IPOs raised a paltry $4.7 billion.
The article also highlighted how, when the market is down, one big IPO can really change the numbers, which puts these big swings in perspective:
Nearly half of the U.S. proceeds from January through June stemmed from the $4.4 billion IPO in May by Kenvue, a divestment by Johnson & Johnson of its consumer health care business.
The article generally has a positive outlook on the market for the next 12 months and encourages companies in that stage to start planning for an IPO and life as a public company.
– Meredith Ervine