After a record-breaking 2021, the global IPO market took a sharp turn in the opposite direction in 2022. With only 1,333 IPOs raising US$179.5b, IPO activity dipped 45% and 61% by number of deals and proceeds.
As the average deal size shrank due to lowered valuation and poor stock market performance, there were not as many large IPOs launch in 2022, according to EY Global IPO Trends 2022.
But, there were a few select industries and regions that did achieve modest success. The tech sector continued to lead by volume accounting for 23% of deals, while the energy sector dominated by proceeds, accounting for 22% in 2022.
Among listed mega IPOs, which are defined as those that raised proceeds of more than US$1b, the average proceeds in 2022 are 45% higher than those in 2021, on the back of strong valuation for the mega energy IPOs that took place this year.
Certain markets such as Mainland China, Middle East and some ASEAN countries have performed relatively well despite the significant global underperformance.
EMEIA delivered 5 of the top 10 IPOs this year
EMEIA IPO activity fell by 53% and 55% by number and proceeds, respectively, recording 358 IPOs raising US$49.9b.
Even though Europe IPO activity was down 78% due to geopolitical turmoil, MENA was up 115% by proceeds as it benefited from the large energy and other IPOs completed, coupled with the initiative rolled out by the government’s privatization plan.