Blog — 23 Jan, 2023
Activity Volumes Across the Equity Capital Markets Dropped Significantly in 2022
By Ken Shimokawa and Alyssa Bonifacio
2022 proved to be a challenging year for global equity capital markets as ongoing inflationary pressures, geopolitical instability and tighter monetary policies led to significant reductions in capital raising activity. Total global proceeds amounted to $421 billion with 4,961 offerings closed in 2022 – a 62% drop in total deal value and a 37% slide in deal volume compared to last year.
Aftermarket performance of 2022 IPOs followed a similar downward trend that took shape in the prior year, as inflation and interest hikes fueled broader volatility in the equity markets. Most average performance changes for 2022 IPOs are slightly higher than comparable figures from 2021, but 2022 deals are underperforming other recent vintages, especially in longer-term metrics.
The initial public offering (IPO) activity of SPACs dipped drastically from their record high performance in 2021. Market volatility, inflation and the contractionary monetary policy response of most financial regulators worldwide tempered SPAC IPO prospects in 2022. The end result: 554 fewer SPACs hit the market in 2022 compared to 2021, amounting to a 90% drop in total capital raised.