The Clap
The number of IPOs during 2022 declined by around 80%, with volatile markets discouraging businesses from going public.
What
This year, only 156 companies were listed on the NASDAQ, raising around $15 billion. This is significantly less than the 743 companies listed in 2021, which raised $180 billion.
Aggressive interest rate hikes sparked sell-offs consistently during the year and drove investors away from investing in equities.
So What
Despite inflation showing signs of slowing down, the Fed sent a negative signal to investors, projecting elevated rates all throughout 2023.
Now What
The slowdown in IPOs is expected to continue well into 2023.
