The IPO window has slammed shut, the unicorns have disappeared somewhere: CNN analyzed data from a study by Renaissance Capital. According to publicly available information, there were only 53 IPOs this year, or 80% fewer than in the same period in 2021. The number of applications for initial public offering of shares also decreased - to 94, which means a drop of 74%. The vast majority of companies belong to the IT sector or are associated with it.
Total IPO revenue decreased by 95.3% compared to last year and amounted to $4.5 billion. In the most unsuccessful 2016, IPOs brought in $18.8 billion.
And although the IPO market is always quiet in the summer, the current situation means that there will be no soaring "debutante stocks" in the near future. What’s more, CNN is reminded of Robinhood, Bumble and Oatly — 2021 IPO alumni — who are struggling this year. “The failures of companies that go public in 2021 do not bode well for those planning to go public now. Companies are waiting for the situation to level off, ”the publication quotes the words of Rachel Gerring, who heads the IPO of EY Americas.
However, investors have a list of unicorns that they keep a close eye on in anticipation of their IPO. First up are Elon Musk's SpaceX and TikTok owner ByteDance. Both companies are valued well above $100 billion, and neither has given any indication that it is going to list shares in the near future. In addition to them, hopes are pinned on Epic Games and FTX. Fortnite developer Epic Games is valued at $31.5 billion; cryptocurrency investment company FTX is worth $32 billion in the future. According to analysts, the situation in the IPO market may begin to improve in the fourth quarter of this yearly 2023.
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