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[author: Carlos Juarez]
The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee held a panel discussion on recent trends in corporate public offerings at its October 13, 2022 meeting. The panel, “Public Market Update: A 12-Month Look at the State of the IPO Market,” kicked off with Refinitiv’s overview of the stock market.
Over the last 12 months, the company has raised capital through a variety of transactions, including “traditional IPOs”, follow-on offerings, convertible bond offerings, and through initial business combinations with SPACs, traditional reverse mergers, and direct transactions. Accessed the open market. list. However, overall US equity capital market activity has declined sharply. The company raised $89.3 billion in all those public offerings in his first nine months of 2022, according to Refinitiv data, an 80% drop from the previous year.
The IPO market was similarly affected. In 2021, 318 US companies will be listed on US exchanges. This was his highest IPO number since 2000. But in the first nine months of 2022, the number of IPOs fell by 94% compared to his first three quarters of 2021. This is the slowest IPO market since 2009. The company raised $6.6 billion in his first nine months of 2022. This is the lowest level of funding since 1990. SPAC capital raising has slowed significantly.
US-listed traditional IPO
Source: Refinitiv
As in previous years, technology, healthcare, and industrial companies continue to dominate IPOs. Between January 2021 and September 2022, the tech sector raised $43 billion in his 82 deals. Healthcare raised $26.8 billion in 151 deals. The industrial sector raised $19.7 billion in 21 deals. The number of first IPO filings has also decreased from 293 in the first nine months of 2021 to 80 in 2022. There will be 17 first IPO filings in September 2022, representing more than 21% of all 2022 filings. This may indicate a renewed interest in public market access.
Perspectives from PwC were provided following the panel discussion. Based on market insight and continued concerns over the difficulty of accessing public markets, the Commission decided to recommend his SEC harmonize rules for IPOs, SPACs, and direct listings.
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