Q1 2023 IPO Trends: Market Downturn Persists

The initial public offering (IPO) market started off slow in the first quarter of 2023. In total, 46 IPOs raised a combined total of $3.1 billion during Q1.

Q1 2023 did see an increase in both the number of IPOs and the proceeds raised compared to Q4 2022. However, compared to offerings completed in the first quarter in each of the last five years, Q1 2023 saw a substantial decrease in the total amount raised. Compared to Q1 2022, total proceeds dropped 72%, reflecting the market cool down since the hot streak seen throughout 2021 into 2022.

During Q1 2023, 35 traditional IPOs were completed, raising $2.3 billion. In comparison, 11 special purpose acquisition company (SPAC) IPOs raised total proceeds of $797 million. This is more activity than what was seen in Q4 2022, which saw the second lowest number of listings recorded since Q1 2016.

Quarterly Overview - Q1 2023 IPOs and IPO Type

Auditor Market Share – All IPOs

The auditor market share of IPOs was diverse in Q1 2023, with 25 firms represented. 12 firms each audited more than one IPO client in the quarter. Marcum led the market with seven IPO clients, totaling $368 million in total proceeds. Deloitte’s two IPO clients raised the highest amount of proceeds, totaling $828 million.

Auditor Marketshare - Q1 2023 IPOs - Including SPACs

Auditor Market Share – Excluding SPACs

Friedman topped the traditional IPO market with five IPO clients during the quarter. Deloitte’s two traditional IPO clients raised the most combined gross proceeds.

In total, twelve audit firms each had one IPO client in Q1 2023.

Auditor Marketshare - Q1 2023 IPOs - excluding SPACs

The IPO market is likely to continue to remain depressed given the uncertainty around the banking crisis coupled with concerns surrounding higher interest rates and inflation.