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IPO advisory follow-on share repurchase convertible debt advisory call spread capped call bond hedge capital structure optimization.
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Following record activity levels in 2021, IPOs have slowed to a crawl in 2022
Not surprisingly, US IPO issuance has been quite limited in 2022 given the state of the equity markets. In 2021, companies raised more than $150 billion in proceeds across 322 IPOs1 on the back of (i) historically low interest rates, (ii) economic stimulus and other forms of government aid, (iii) public company valuations trading at all-time highs and (iv) generally favorable market conditions. Activity was dominated by high-growth sectors such as technology and health care and, to a lesser extent, consumer. The market started to cool off in Q4 2021 amid uncertainty around inflation and interest rates and has generally traded lower since then. With IPO volumes down (94%) YTD this year, the US IPO market could have its lowest year on record in terms of proceeds raised.