If you follow IPO news, then you’ll know that every year sees a handful of companies considering initial public offerings have generated the most buzz among stock market investors. In most cases, the anticipation is always around companies seen as having the potential to be major players in their respective industries.
In 2023, there are a number of companies that are likely to see the most interest. Here is a summary of the top IPO statistics.
Key takeawaysThe global IPO market saw a decline in both volume and amounts raised in Q1 2023, compared to the same period in 2022. There were 299 global IPOs in Q1 2023, down 8% from public listings during the same quarter 2022. 5,995 IPOs have gone live on the US stock market between 2000 and 2023. The total amounts raised from global IPOs in Q1 2023 was $21.5 billion, down 61% from $54.7 billion in Q1 2022 The Shenzhen Stock Exchange was the top global IPO venue in Q1 2023, raising $4.7 billion Top upcoming IPOs to watch out for in 2023 include Stripe, Discord, Arm Ltd, Databricks and Vinfast
There are a number of factors that trigger investor interest in IPOs, including:Economic outlook: Inflation concerns and interest rates outlook affect investors. Low interest rates make it cheaper for companies to borrow money, which makes it easier for them to go public. Strong stock markets: When stock markets are on a tear, it becomes more attractive for companies to go public amid a more positive environment. Innovation: A number of big innovation and tech developments, including in electric vehicle (EV), Artificial Intelligence and blockchain technology are key in the fintech world. Many companies in these sectors find it easier to attract stock investors. Investor demand: Greater investor demand has often driven the prices of IPO shares.
Despite the unforgiving economic and geopolitical backdrop, inflation, and rising energy prices, IPO statistics for the first quarter 2023 indicate nearly 300 companies went public globally.
According to a report by EY, the numbers however showed a significant drop from a year ago, with many companies holding out on going public as they eye the stock markets for signs of stability and upbeat investor sentiment.
Here’s a summary of the global IPO market for Q1, 2023.
The global IPO market saw a decline in both volume and proceeds in Q1 2023, compared to the same period in 2022. In total, there were 299 global IPOs in Q1 2023, down 8% from 325 in Q1 2022.
IPO stats for Q1, 2023 show that the total amounts raised from investors globally in Q1 2023 was $21.5 billion, down 61% from $54.7 billion in Q1 2022.
While company listings have declined in 2023, the US has still recorded 63 IPOs so far in 2023. However, latest data shows this represents a 41% decline over figures in the same time frame in 2022, which had 107 IPOs at the same stage.
Notably, there were 5,995 IPOs in the US from 2000 to the end of Q1, 2023, with a wide range of industries represented. In 2009, only 62 companies went public, while in 2021, a record-breaking 1,035 companies did.
IPO statistics for Q1 show that Asia-Pacific saw 175 IPOs in the first quarter of the year, accounting for 59% of the global total. The United States accounted for 31% of global IPO deals in Q1 2023, down from 39% in Q1 2022, while the EMEA (Europe, Middle East, and Africa) saw a 19% dip.
Gas PLC of the United Arab Emirates recorded the world’s largest IPO in Q1 2023. According to an IPO report for MENA by EY, the company raised $2.5 billion on the Abu Dhabi Securities Exchange.
China’s Shenzhen and Shanghai took the top two spots in Q1 IPO market share by exchanges, accounting for 22% and 20%, respectively, and raising $4.7 billion and $4.3 billion
Abu Dhabi attracted $3 billion worth of IPO investments in the first quarter of 2023, placing it third worldwide.
The Nasdaq Composite in New York attracted $2.1 billion from public listings in the first quarter of 2023. It was fourth largest in Q1.
Indonesia’s stock exchange attracted $1.8 billion in IPO investments in the first quarter of 2023, the fifth largest in the world during the quarter.
Hong Kong’s stock exchange attracted $1.7 billion from IPO investors in the first quarter of 2023, sixth globally.
Tokyo’s stock exchange was seventh globally in terms of IPO investments, with $1.6 billion raised in Q1, 2023.
Beijing’s stock exchange attracted $1.4 billion from IPOs in Q1, 2023. This saw the stock exchange rank eighth globally.
Italy’s Borsa Italiana recorded $1.3 billion in IPOs during the first quarter of 2023, placing ninth worldwide.
High investor confidence led to record-breaking capital raising in 2022, with the number of IPOs increasing by 62% from 2021.
The average IPO size was $192 million, as companies raised more funds on average during their year compared to the previous year.
The US remained the dominant market for IPOs, despite a slight decrease, with 48% of the market compared to China’s 22%.
While the technology sector continues to lead, reflecting the ongoing digital transformation, the total IPOs in the year dropped slightly from 57% to 52%. Comparatively, Healthcare related IPOs grew to 15% from 13% in 2021 and financial services from 19% to 17%.
Investors were willing to pay more per share in 2022, with the average IPO price rising 10% to $22 as valuations rose amid a stronger market performance.
While the IPO market could still see a mega listing going forward, the most notable public listing – the top 10 largest IPOs in history, is that of Saudi Arabian oil company Saudi Aramco. The IPO raised $29.4 billion in 2019 on Tadawul, Saudi Arabia’s stock exchange. It trumped those of Alibaba, SoftBank Group, General Motors, Visa Inc. and Meta (formely Facebook) that still rank among the largest so far.
The global IPO market is expected to remain challenging in 2023 in general, as investors remain cautious about the economic outlook. Below are the best highly anticipated IPOs in the second half of 2023 or later.
Stripe is a payment processing company that was founded in 2010 by Patrick and John Collison. The company has quickly become one of the leading payment processors in the world, processing billions of dollars in transactions each year. Stripe is reportedly considering an IPO in the second half of 2023, and the company is expected to be valued at over $50 billion.
Reddit is a social media website that was founded in 2005. The website is known for its user-generated content, which is organized into subreddits, or forums, on a variety of topics. Reddit has over 500 million active users each month, and the company is reportedly considering an IPO in the second half of 2023. Reddit is expected to be valued at over $10 billion.
Arm Ltd. is a British microchip designer that is owned by Japan-based SoftBank Group Corp. The company is changing its pricing model in advance of going public, adjusting its royalty program to charge semiconductor developers for deploying its designs based on a particular semiconductor chip’s market value.
Instacart Inc. is an online grocery delivery service that was founded in 2012. The company has quickly become one of the leading online grocery delivery services in the United States, and Instacart is reportedly considering an IPO in late 2023. Instacart is expected to be valued at over $10 billion.
Databricks Inc. is a cloud computing analytics firm founded in 2013. The company provides a platform for businesses to analyze data using Apache Spark, a popular open-source analytics framework. Databricks is reportedly considering an IPO in 2023, and the company is expected to be valued at over $30 billion.
Chime Financial Inc. is an online banking services provider founded in 2013. The company offers a variety of banking services, including checking and savings accounts, as well as personal loans and credit cards. Chime is reportedly considering an IPO in the second half of 2023, and the company is expected to be valued at over $25 billion.
Discord Inc. is an instant messaging and streaming service. The company was founded in 2015 and is popular among gamers and other online communities. It is reportedly considering an IPO in the second half of 2023. Discord is expected to be valued at over $15 billion.
TripActions Inc. is a corporate travel and expenses company that was founded in 2015. The company provides a platform for businesses to manage their travel and expenses. TripActions is reportedly set for a valuation of $12 billion.
Klarna Bank AB is a Swedish buy-now-pay-later company that was founded in 2005. The company offers a variety of payment options to consumers, including the ability to pay for purchases in installments. Klarna is expected to be valued at over $6 billion.
Founded in 2013, Oscar Health Inc. offers health insurance plans for individuals and families. The company is expected to go public at a $4 billion valuation.
Affirm Holdings Inc. is a financial technology company that offers a variety of payment options to consumers, including the ability to pay for purchases in installments. Affirm was founded in 2012 and is looking to go public via an IPO in 2023 at a $25 billion valuation.
VinFast is a Vietnamese automotive manufacturer owned by Vingroup, a Vietnamese conglomerate. The electric vehicle company entered into a business combination agreement with Black Spade Acquisition Co (NYSE: BSAQ), with the deal’s enterprise value put at roughly $27 billion. The company expects the deal to close in the second half of 2023, at an equity value of $23 billion.
The IPO market exploded in 2021 and then saw a slow start in 2023 as the macroeconomic headwinds and other factors that impacted 2022 spilled into this year. Despite the decline in total public listing so far, there still has been some of the best companies going public across industries such as consumer health products, e-commerce, digital marketing services, online food delivery, and solar tracking systems.
Although headwinds still abound, including inflation, interest rates and banking sector turmoil, investors are looking to see an uptick in IPOs, with top picks likely to be the likes of Stripe (if it lists), Arm Ltd and Discord among others.
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