Over the last decade, a rising number of companies have come to the IPO market with heavy losses. But for many issuers looking to go public in 2022, profitability will be a prerequisite.
There are several factors behind the decade-long increase in unprofitable IPOs. IPO investors at the beginning of last decade were more cautious as markets recovered from the Great Recession. More recently, the IPO market saw an explosion in issuance from pre-revenue biotechs and high-growth, large-loss tech companies. In 2021, only 29% of US IPOs had...
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