The 2022 US IPO market is on track to raise the lowest proceeds of any year in our firm’s 30+ year history, and yet we expect the year to end on a positive note with a small pickup in activity. High inflation, rising interest rates, fallout from the war in Ukraine, and fears of recession have caused IPO activity to slow to a crawl. Just 9 companies – mostly micro-caps – submitted initial filings in August, compared to the 10-year average of 23 filings. That said, a few IPO market indicators have signaled a potential pickup in activity: the Renaissance IPOIndex (IPOUSA) has outperformed the Nasdaq over the past 3 months, secondary offerings rebounded in August, and a number of companies have refreshed their public filings.
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