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RIYADH: Global initial public offerings, or IPO, activity has dropped 70 percent in the first quarter, or Q1, of 2022 as skyrocketing inflation and geopolitical tensions between Russia and Ukraine risk investors’ appetite, according to Bloomberg.
An estimated $65 billion has been raised through IPO in Q1 of 2022, down 70 percent from the $219 billion raised in Q1 of 2021.
This reflects the lowest quarterly proceeds since the beginning of the coronavirus pandemic in early 2020.
Nevertheless, firms such as renewable energy provider Plenitude and Swiss pharmaceutical company Galderma are planning to test investors’ appetite for new shares in the few months to come.
“This is probably the worst time in five years in terms of market sentiment,” Bloomberg reported, citing Li Hang, head of equity capital markets and syndicate at brokerage CLSA.