MW GP644 MicroS ZG 20180906154215 1 captis executive search management consulting leadership board services

U.S. IPO market sees slowest Q1 in six years as deal flow falls to 18 to raise just $2.1 billion

MW GP644 MicroS ZG 20180906154215 1 captis executive search management consulting leadership board services

The U.S. initial public offering market had its slowest first quarter in six years, according to Renaissance Capital, with just 18 deals raising $2.1 billion. “Plummeting returns at the end of 2021 effectively put an end to the past year’s IPO boom, and coupled with the escalating war in Europe, issuance ground to a halt in late February,” Renaissance, a provider of institutional research and IPO ETFs, said in commentary. There were just seven IPOs that raised more than $50 million in the period, led by TPG’s billion-dollar deal, which accounted for nearly half of overall proceeds. The private-equity firm
TPG,
-1.57%

went public in January some 30 years after it launched under the name Texas Pacific Group. Much of the market activity involved microcaps, causing the median deal size to fall to $27 million, the lowest in at least two decades. “IPOs averaged a 33% return, driven by explosive first-day pops from volatile small issuers and decent returns from larger ones,” said Renaissance. “The Renaissance IPO Index
IPO,
+2.56%

had its worst quarter since 2011 with a 25% drop, well below the S&P 500’s loss.” The special purpose acquisition corporation market also ran out of steam, with an almost 70% decline in pricings from the fourth quarter and a rise in deal withdrawals, redemption rates and merger terminations. The outlook for the second quarter is “foggy” and risk appetite will need to return before activity is likely to resume.

This is not a CAPTIS article. Originally, it was published here.