Deals
Global IPO Market Revival Undermined by Banking, Recession Risks
- IPOs have raised $19.7 billion this year, down 70% from 2022
- Banking turmoil exacerbates uncertainty around rate-hike path
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Banking turmoil and recession risks are spelling trouble for the global IPO market, keeping it mired in a slump even after investors started the year thinking that the worst of the stocks rout might be over.
Companies have raised just $19.7 billion via initial public offerings in 2023, according to data compiled by Bloomberg. That’s down 70% year-on-year and the lowest comparable amount since 2019. The steepest fall was seen in the US, where only $3.2 billion has been raised. The subdued activity follows on from last year, when high inflation and aggressive rate hikes by central banks sapped investors’ risk appetite.