2022 Going Public: U.S. IPO Report
By The Paul Hastings Securities and Capital Markets Practice
Coming out of a record-breaking 2021, the IPO market during 2022 plummeted, challenged by various concerns, including inflation, geopolitical conflict, rising interest rates, ongoing disruptions to the supply chain caused by the COVID-19 pandemic and recessionary fears. As we move through 2022, what should potential issuers expect? In Going Public: U.S. IPO Report, our team examined 183 of the IPOs that priced between 2020 and 2022 with base deal sizes over $75 million to uncover key takeaways for prospective issuers, sponsors, investment banks and investors.
Some of the leading market trends included:
- Fewer IPOs in 2022 than in 2021 and an increase in small-cap priced deals;
- A move away from tech, media & telecom deals and a resurgence in the percentage of healthcare deals;
- Doubling the time it takes to complete an IPO despite a streamlined SEC review process; and
- Decreasing numbers of foreign privates issuers.
As we look forward, we should expect continued softness in the IPO market and an unlikely resurgence in the mega-deals that priced in 2021. Companies seeking to go public will continue to contend with the SEC’s proposed new rules and frenetic rulemaking pace. However, despite market volatility and increased scrutiny from the government, issuers should continue to prepare for opportunities once market windows are available. Please tune into our video for additional insight from Chris DeCresce and Eric Sibbitt, the Securities and Capital Markets practice Co-Vice Chairs, and read the report for a full analysis of our findings.