Blog — 26 Jan, 2024
Equity Issuance Finishes 2023 Flat Year over Year; Long-Term IPO Performance Improves
Higher interest rates and global macroeconomic uncertainty continued to impact global equity market issuance in 2023, which fueled flat movement in capital raising activity compared to 2022. Total global proceeds for 2023 amounted to $426 billion with 5,314 offerings, a 0.1% decline in capital raised, and a 3.8% growth in deal volume compared to last year.
The Industrials and Healthcare sectors took the lead in total proceeds raised in 2023, with $70 billion and $65 billion, respectively. Healthcare posted the highest year-over-year growth of 16%, while the Financials and Materials sectors continued to underperform with respective 22% and 18% declines in total proceeds compared to last year.
Global IPO activity remained sluggish in 2023 due to the continued impact of an uncertain macroeconomic environment and higher interest rates. The average stock performance of 2023 IPOs are below comparable post-IPO figures from 2022. The post-listing returns of 2023 IPOs performed better in longer-term metrics, with the highest average gain of 133.2% posted at the one-year period.