In the face of the uncertain environment 2021 promised, the global IPO market had an exceptional year, breaking records by IPO volume and proceeds consistently into the fourth quarter. Overall, 2021 saw a total of 2,388 deals raising US$453.3b in proceeds, a 64% and 67% respective increase YOY.
Through 2021, global markets experienced overall increases by both IPO volume and proceeds, but Europe, Middle East, India and Africa (EMEIA) exchanges produced the highest growth, seeing a 158% increase by number and 214% increase by proceeds (724 IPOs raising US$109.4b). The Americas remained hot as well, ending the year with 528 IPOs raising US$174.6b by proceeds, an 87% and 78% increase, respectively. The Asia-Pacific region experienced relatively modest growth resulting in 1,136 IPOs (28% increase) raising US$169.3b by proceeds (22% increase).
Globally, the technology sector saw the highest number of IPOs (611) for the sixth consecutive quarter since Q3 2020 and raised the highest proceeds (US$147.5b) for the seventh consecutive quarter since Q2 2020. Health care raised the next highest by volume and proceeds, seeing 376 IPOs raise US$65.4b by proceeds. Industrials was not far behind health care, with 310 IPOs raising US$63.1b by proceeds.
Looking ahead to the new year, both headwinds and tailwinds are in sight which will likely impact IPO activity. A combination of geopolitical tensions, inflation risks, and new waves and variants of the ongoing COVID-19 pandemic that hamper full economic recovery are all at play. Despite all of these, relatively high valuations and market liquidity for now are keeping the IPO window open in 2022. IPO candidates can expect higher market volatility and thus should remain flexible with a plan B in place to meet financing needs in case the IPO timetable is delayed.