06.06.202205:35 Forex Analysis & Reviews: The volume of funds raised through IPOs on the US and European stock exchanges fell by 90%

In the first five months of 2022, the volume of funds raised through IPOs on the US and European exchanges fell by 90% compared to the same period last year.

Thus, 157 companies entered the IPO, which in total raised $17.9 billion, while last year, from January to May, 628 companies raised $192 billion. $81 billion. Of the ten largest IPOs this year, only two procedures were carried out on the American or European stock exchanges: the TPG investment group raised $1 billion on Nasdaq, the Norwegian oil and gas company Var Energi raised $880 million in Oslo.

This year, companies' plans to go public have been thwarted by military action in Ukraine, market volatility and the threat of a global recession. Last year, companies that postponed their plans due to the coronavirus pandemic in 2020 rushed to implement them.

Martin Glass, a partner at consulting law firm Jenner & Block, noted that once the situation stabilizes, they will see a recovery in activity, even if it does not reach the level of last year.

However, a partner at White & Case, which also advises on IPO issues, Inigo Estev believes that a significant part of the listings will be carried over to next year.

At the same time, the expert admitted that in the fall, if for some reason everything suddenly changes for the better, companies will be more active.

The Financial Times also lists potentially large IPOs that have been planned for this year and may yet be completed. So,

British pharmaceutical group GlaxoSmithKline may list its joint venture Haleon, US insurance company AIG its property and asset management business, and Volkswagen planned a partial listing of Porsche shares.