After a strong start to the year, the global IPO market collapsed in the aftermath of the invasion of Ukraine.
The momentum of companies going public last year continued into 2022 as the global initial public offerings (IPO) value was $32 billion for the first month of the year, the highest level in 21 years. That all changed in February with Russia’s invasion of Ukraine, according to a report from EY (in German).
For the first quarter as a whole, however, the number of IPOs fell to 312 compared to 512 in the first three months of last year, a 37 percent decline. The value of the deals fell to $54.4 billion, down just over half from the $112.0 billion in the first three months of last year.
Wait-and-See
Last year saw the largest number of IPOs since 2000, helped in part by the effect from the Corona pandemic. But tensions between Russia and Ukraine followed by invasion stopped that momentum.
«The war in Ukraine and the massive increase in political and economic uncertainty meant that many companies postponed their IPO plans for the first quarter,» according to EY IPO expert Tobias Meyer.
«In the current situation, many companies are waiting and using the time to prepare well for the IPO,» added EY partner Martin Steinbach. «Therefore, the second half of 2022 could also become significantly more active again.»
Biggest IPO
South Korean battery maker LG Energy Solution was the largest IPO so far this year, raising $10.7 billion, followed by China Mobile with $8.2 billion, both of which were in January.
Swiss IPOs
During the first quarter, the first IPO on the SIX exchange's «Sparks» segment for small and medium enterprises took place. Xlife Sciences moved from the Munich Stock Exchange to SIX, and Talenthouse will complete its IPO on the Swiss Exchange today.
Digital investment platform operator Smart Valor went public on the NASDAQ in Stockholm, according to EY.
The following graphic shows a breakdown of global IPO activity by major region in the first quarter.
