The US IPO Index has plummeted 51% year-to-date, in the IPO market’s sharpest sell-off since at least the 2008 Global Financial Crisis. Of the 397 traditional IPOs in 2021, only 12% are trading above issue. Rampant speculation and near-zero interest rates helped fuel sky-high valuations last year, but with inflation at a 40-year high, the US Fed has begun to rapidly tighten monetary policy, sparking a broad sell-off in growth stocks. With US GDP declining in the 1Q22, there is more talk of a possible recession on the horizon.
Over the past 90 days, the IPO Index has fallen...
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