After a record breaking year, the US IPO market came back to earth with a thud in the first quarter. Now, bankers are praying for some stability to breath life back into the market.
Volatility from Russia’s invasion of Ukraine, faster inflation and rising interest rates triggered the slowest quarter of US initial public offerings in more than five years. At one point, the market ground to a complete halt, with longest period without an initial public offering since the Great Recession.
In many ways, a downturn was inevitable. The market simply couldn’t maintain the pace of the year before as the rotation to value from growth forced many listing candidates to reconsider their plans and recent debuts extended a selloff.