US IPOs have continued to increase in 2023, with some experts suggesting the surge in listings indicates an improved market outlook.
Last week was the busiest week for IPOs stateside in 15 months as five companies went public, research from Dealogic data found.
Companies like solar tech business Nextracker and Chinese sensor manufacturer Hesai Group issued shares worth a total of US$638mln and US$190mln respectively.
Total new money raised last week amounted to more than US$1bln, having significantly risen from the US$193mln raised in the week prior, Dealogic added.
The number of public offerings could continue to increase this year as market volatility decreases and corporate valuations rise.
In 2022, US IPOs raised the lowest amount of equity in two decades at US$8.7bln compared to US$154bln in 2021.
In the UK, the IPO market was also stunted by tough conditions with the number of companies listing falling by 45% in 2022, research by EY identified.
Money raised dropped by 61% year on year, reflecting the impact of the Ukraine war, the lingering hangover of a pandemic and high inflation.
Olivia Newcombe at Cognito Media said: “Those that did take the plunge found it more difficult to raise cash, which led to smaller average deal sizes, and most have suffered hefty declines since going public.”
However, a steady pipeline of IPOs could provide a better outlook for 2023.
Rumours of companies planning to list in the UK include:
- Brewdog
- Huel
- EG Group (Asda’s owner)
- Mclaren
- Monzo
- Jaguar Land Rover
Svetlana Marriot, head of KMPG UK capital market advisory, added: “Expect that the IPO pipeline will return to a healthier state once signs of stability begin to show. "Coupled with encouraging signs that activity levels will start to return suggests that the outlook for 2023 is one of cautious optimism.”