IPO market outlook is 'foggy' heading into second quarter as falling returns at year-end and war in Europe dampens risk appetite

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The IPO market slowed to a crawl in the first quarter, with just 18 deals raising $2.1 billion to mark the quietest first quarter in six years, according to a new report from Renaissance Capital.

The outlook for the U.S. initial public offering heading into the second quarter is “foggy,” and will likely remain subdued unless returns improve and risk appetite recovers, according to Renaissance Capital.

The market does have a solid backlog of deals, with companies waiting to pull the trigger once conditions improve, however. There are currently 132 companies on file looking to raise almost $20 billion, and 89 of those are in the “active pipeline,” meaning they have filed or updated terms in the last 90 days.

Among the bigger deals are those pending from eyecare company Bausch & Lomb, retailer Mattress Firm and grocer The Fresh Market. In the tech space, car sharing platform Turo and marketing software company Basis Global Technologies are expected to lead. See now: At least 3 SPACs pull IPOs in latest sign popular pandemic route to public markets is losing steamThere were 53 SPAC offerings raising $8.8 billion, down 90% from the year-earlier period.

 

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