The following is the In the first half of 2022, the total capital raised by US stock IPO was only US $4.9 billion, less than 6% raised in the same period of 2021 From Bloomberg compilations recommended by recordtrend.com. And this article belongs to the classification: financial technology.
In 2021, a large number of companies went public at a record speed despite the epidemic. This year, market volatility, high inflation and concerns about the economic downturn have cooled the US IPO market rapidly. According to the data compiled by Bloomberg, the total capital raised by US stock IPOs in the first half of 2022 was only US $4.9 billion, less than 6% of the nearly US $102billion raised in the same period of 2021. Although the value in 2021 is an abnormal value caused by special reasons, the financing amount in the first half of this year is still far below the average level of US $47billion in recent five years.
Dealmakers said that the “IPO shortage” of US stocks is unlikely to ease this summer. If the economic outlook does not improve, this situation may continue into the second half of this year.
Alaoui zenere, CO head of financial institutions and financial technology equity capital markets at JPMorgan Chase, said: “all these indicators that investors are very concerned about need a positive momentum before we can expect capital market activity to improve.” She said these indicators include CPI, VIX, etc.
“If the market continues to stabilize for a period of time, we will see a considerable number of IPOs. But if the market continues to fluctuate, companies will remain cautious,” she said
More drastic decline
Although the overall amount of IPO Financing in the world has declined from last year’s record high, the decline in the United States is much larger. Data show that the United States has dropped by 95% compared with the same period last year, while other markets have only dropped by 41%.
So far this year, only two US stock IPOs have raised more than US $500million. TPG Inc., an alternative asset management company, raised $1.1 billion in January, while Bausch & Lomb, an eye care company, raised $630million in May.
Trading loss
According to data compiled by Bloomberg, excluding blank check companies, companies listed in the United States last year have fallen by 44% on a weighted average since listing. Of the more than 500 companies, only about one in ten have trading prices higher than their offering prices.
Private companies, especially technology start-ups that have raised funds with astonishing valuations in the past few years to achieve IPOs, have put aside their listing plans. According to the data, no technology start-up company with a valuation of US $1billion or more supported by venture capital has been listed in the United States this year.
Lear Beyer and Craig McCracken, CO heads of Wells Fargo ECM, said that as investors turned to their funds based on cash flow rather than growth, the performance of unprofitable newly listed companies fell behind those more robust and profitable peers for the first time in five years.
IPO backlog
At the same time, 185 companies applied to the securities and Exchange Commission for IPO in the past year. This does not include startups that have not yet publicly submitted their IPO plans.
Instacart Inc. secretly submitted its listing documents to the US Securities and Exchange Commission in May this year, and has now reduced its valuation by 40%. Its valuation fell to $24billion in March, lower than the $39billion raised in March 2021.
People familiar with the matter said that instacart is now looking for an IPO when the window of opportunity reopens, but it is not expected to be earlier than September.
Other companies awaiting listing include redditinc., stripeinc. and discordinc. People familiar with the matter said that the industry’s concern about online advertising revenue put reddit under greater pressure.
block trade
The IPO freeze also extends to large transactions, another traditionally profitable business for investment banks.
Financial sponsors holding shares in listed companies are reluctant to sell their shares in the depressed public market. Some companies choose to transfer their shares to their investors or limited partners rather than return cash after a large transaction.
According to Wells Fargo’s McCracken, this practice, known as placement, has traditionally been used by venture capital firms, but it is also popular among private equity firms.
Some listed companies seeking to raise funds have turned to more structured financing products such as convertible bonds.
David Ludwig, global head of Goldman Sachs ECM, said that although convertible bonds are a good way to ease the market, the company will still use them cautiously.
Read more from Zhitong Finance: chainalysis: in 2021, the global NFT market exceeded US $26.9 billion Finder: the survey showed that the encryption adoption rate in the UK increased by 1% in December, The adoption rate of ether ranks the third in the world. The market value of TEDA coin has exceeded US $60billion. Cryptocompare: the transaction volume of cryptocurrency dropped by more than 40% in June 2021. National interests: China has become the “leader” of global digital currency JPMorgan Chase: one third of large investors believe that bitcoin is a “rat poison” 360 Finance: 4q19 revenue of 2.4 billion yuan and net profit of 430million yuan Lexin: 2019 annual revenue of 10.6 billion yuan and transaction scale of 126 billion yuan futu: 4q19 revenue of 39.9 million US dollars, with a year-on-year increase of 36.8% superjob: one third of Russians plan to apply for Mir UnionPay double standard card tipalti: how much money can American technology giants make every second? In 2020, apple made more than US $1700 per second. Visa announced that it would acquire the Silicon Valley financial technology startup Plaid financial industry at a price of US $5.3 billion: coping with labor transformation, time waits for no man (download attached) legal business lianxun risk information: 2022 financial crime compliance real cost report – layoff China Version FYI: in May, 2022, 16800 people were laid off by global technology companies, the highest in the past two years
If you want to get the full report, you can contact us by leaving us the comment. If you think the information here might be helpful to others, please actively share it. If you want others to see your attitude towards this report, please actively comment and discuss it. Please stay tuned to us, we will keep updating as much as possible to record future development trends.
RecordTrend.com is a website that focuses on future technologies, markets and user trends. We are responsible for collecting the latest research data, authority data, industry research and analysis reports. We are committed to becoming a data and report sharing platform for professionals and decision makers. We look forward to working with you to record the development trends of today’s economy, technology, industrial chain and business model.Welcome to follow, comment and bookmark us, and hope to share the future with you, and look forward to your success with our help.
