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 US$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 US$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.
