Broader market volatility continued to suppress US ECM throughout the first half of 2022 resulting in issuance tapering further into Q2. Unregistered Block activity remains elevated trailing only marketed follow-ons as the most active offering type tracked by CMG. Early signs of potential easing in commodity prices, inflation and the VIX could signal a near-term bottom. Expect an increase in follow-on issuance to precede any notable increase in IPO activity.
YTD Trends and Highlights
- Including Unregistered Block activity tracked by CMG, YTD transaction volume reached $56.3B with $30.3B raised in Q1 and $26.0B raised in Q2 for a net decrease of 78.3% as compared with the first half of 2021
- January was the busiest month of 2022 with $14.0B
- 54 IPOs raised $4.8B YTD representing a 97.6% decrease over the same period last year, while follow-on issuance raised $51.5B representing a 70.1% decrease over the prior year via 228 offerings
- Real Estate took the lead as the most active sector raising $9.7B (17.3% market share) followed by Utilities $9.3B (16.5% market share) and Healthcare $9.0B (15.9% market share)
- On a dollar-weighted basis, the 2022 IPOs returned 25.4% from offer to first day close (vs. a mean of 88.3% skewed significantly by a few high flying micro caps)
- Mean IPO size fell from $374.6M in H1 2021 to $89.6M in H1 2022, representing a decrease of 76.1% with just 11 IPOs raising over $100M
- On a dollar-weighted basis, registered follow-ons returned 1.5% from offer to first day close (vs. a mean of (4.3%))
- SPAC issuance fell precipitously yet still outpaced traditional IPO issuance with $12.0B raised across 70 offerings
