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IPOs Cool Off: Q1 2022 IPO Trends

Eighty-four companies conducted initial public offerings (IPOs) on the NYSE and Nasdaq during the first quarter of 2022. These companies raised a total of $11.3 billion. Special purpose acquisition companies (SPACs) continued to outpace traditional IPOs, representing about two-thirds of IPOs and nearly 80% of gross proceeds.

The total number of IPOs and the amount raised fell sharply during Q1 2022 compared to Q1 2021. The number of IPOs was down nearly 80% and the amount raised was down over 90%.

Excluding SPACs, the number of Q1 2022 IPOs was down more than 70% and the amount raised was down 95%.

The average amount raised was also much lower than it has been in the previous five years. The average amount raised during Q1 2022 was just $134.3 million. Excluding SPACs, it was just $78.7 million.

The previous low during the past five years was Q1 2019. The average amount raised that year was $194.7 million. Excluding SPACs, it was $189.8 million.

Auditor Market Share – All IPOs

Marcum led all audit firms with 24 IPO clients. Withum and MaloneBailey were tied for second, with seven IPO clients each.

Marcum and Withum have been the dominant auditors of SPACs over the past three years. The two firms combined to audit over 80% of SPAC IPOs between 2019 and 2021. During Q1 2022, the two firms audited just 51% of SPACs.

Auditor Market Share – Excluding SPACs

PwC and EY led non-SPAC IPOs with four clients each. Deloitte and Marcum were next with three clients each.

Deloitte’s clients raised the most money. Most of the $1.2 billion raised by Deloitte’s clients was attributable to TPG, Inc, which raised just over $1 billion.

Data in this analysis obtained from the Audit Analytics Initial Public Offering database.

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