U.S. IPO pick-up offers hope of market re-open

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Is the IPO winter finally easing?

IPOs excluding those of blank-check acquisition companies raised the lowest amount of capital in more than two decades in 2022, with proceeds coming in at $8.7 billion, compared to $154.1 billion in 2021, according to Dealogic., is down nearly 12% since the start of the year, signaling reduced investor anxiety and making the launch of IPOs easier.

"I think we're in a market that has at least begun opening, but it's not open to all issuers yet," said Andrew Wetenhall, co-head of equity capital markets for the Americas at Morgan StanleySome companies are waiting for a sustained IPO recovery before deciding to pull the trigger for their debut, some of the advisers said. That will likely take at least until the summer if the market recovery continues, they added.

"It could be into the summer before you begin to see a more traditional IPO calendar. It's going to be very industry specific, thematic oriented in this next wave ," said Michael Wise, JPMorgan'sReporting by Echo Wang in New York; Editing by Anirban Sen and Chris Reese

 

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