The number and size of initial public offerings (IPOs) continued a drastic decline during the fourth quarter of 2022. In total, 20 IPOs raised a combined total of $1.9 billion during Q4.
In comparison to Q3, the number of IPOs dropped by almost 50% in Q4. This quarter saw the second lowest number of listings recorded (after 2010) since Q1 2016, which had only 14 IPO listings.
Both traditional and special purpose acquisition company (SPAC) IPOs saw a significant decline by the end of 2022. Compared to Q4 2021, the number of traditional IPOs declined by 88%. Similarly, the number of SPAC IPOs declined by 95%. In terms of the amount raised, both traditional and SPAC IPOs fell by 99% compared to last year’s fourth quarter.
Auditor Market Share – All IPOs
The auditor market share amongst Q4 companies was revealed to be less sparse than in previous quarters in 2022. UHY led the market share with four IPO clients, raising $230 million in total. Marcum and PwC followed with two clients each. Although PwC shared second in market share, their clients raised the most with $269 million in gross proceeds.
Auditor Market Share – Excluding SPACs
PwC led the traditional IPO market share with two clients who also raised the most combined gross proceeds. The remaining firms each had only one traditional IPO client.
As suggested by EY, the sharp decline in IPO activity could be attributed to higher inflation and rising interest rates. With looming fears of recession, companies may be moving forward cautiously coming into the new year.
To see how IPO trends have changed year to year, stay tuned for our 2022 annual IPO analysis.
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