Lede

The global market slump has caused a slowdown in initial public offerings (IPOs), which is expected to persist as companies wait for stable stock markets and global economic conditions.

Summary

• EY report shows a global slowdown in IPOs in Q1 2023, with 299 companies going public, down 8% YoY.
• Funds raised from IPOs also decreased 61% YoY to $21.5 billion.
• Uncertainties around volatile stock markets, higher interest rates, and inflation are causing companies to hold out on going public.
• Last year saw a 45% drop in the number of IPOs, according to EY.
• Companies are waiting for the stock markets to stabilize and rebound before listing.
• There is a "backlog" of firms interested in going public, particularly in Mainland China, where there are around 800 companies in the pipeline.
• Lack of returns for firms that went public recently is discouraging other firms from following suit.
• The decline is expected to persist until at least the summer, with a possible recovery in the second half of 2023.
• Governments around the world are trying to promote IPOs in their respective jurisdictions to spur a revival.
• Prominent companies that postponed IPO plans may restart at more modest valuations.