How The IPO Market Went From ‘Boom To Bust’

How the ipo market went from 'boom to bust'

CNBC published this video item, entitled “How The IPO Market Went From ‘Boom To Bust'” – below is their description.

From the best of times, to the worst of times: The market for initial public offerings has fallen off a cliff in 2022.

Investors faced with high inflation and rising interest rates have ditched high-flying growth stocks and turned to safer, more profitable alternatives. The decline has been striking given the record level of proceeds raised through public markets just a year prior. U.S.-listed companies raised over $155 billion in proceeds in 2021 through their initial public offerings, according to data from EY and Dealogic. In the first half of 2022, they only raised $4.8 billion.

“Investors are really risk averse at this moment, and that’s what’s really impacting the lack of activity that we’re seeing,” said Rachel Gerring, IPO leader at EY Americas, in an interview with CNBC. “They’re looking for companies that are focused more on growth and profitability as opposed to the growth at all costs that we were seeing in 2021.”

Watch the video above to find out how the IPO market went from boom to bust in 2022, and whether experts forecast a rebound in 2023.

CNBC YouTube Channel

Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.


About This Source - CNBC

CNBC is an American pay television business news channel owned by NBCUniversal News Group, a division of NBCUniversal, with both indirectly owned by Comcast. Headquartered in Englewood Cliffs, New Jersey, the network primarily carries business day coverage of U.S. and international financial markets. Following the end of the business day and on non-trading days, CNBC primarily carries financial and business-themed documentaries and reality shows.

Recent from CNBC:

Why Target Failed In Canada

Will This Recession See Massive Layoffs?

U.S. Farms Waste A Lot Of Water — But This Tech Could Help

In This Story: Inflation

In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.

1 Recent Items: Inflation

Will high inflation ease? ‘Cavuto Live’ panel discusses

Leave a Comment

We don't require your email address, or your name, for anyone to leave a comment. If you do add an email address, you may be notified if there are replies to your comment - we won't use it for any other purpose. Please make respectful comments, which add value, and avoid personal attacks on others. Links are not allowed in comments - 99% of spam comments, attempt to post links. Please describe where people may find additional information - for example "visit the UN website" or "search Google for..." rather than posting a link. Comments failing to adhere to these guidelines will not be published.