Insight

IPO Insights Q4 2021

The Q4’21 IPO Insights report delivers the latest information and analysis on IPO activity and performance.

Conor Moore

Conor Moore

Partner, National Leader, KPMG Private Enterprise, KPMG US

+1 415-335-8401


 

Is the party over?

It was a year of exciting peaks—that ended with a shift in sentiment towards IPO strategy. 2021 set records across the board. Proceeds from traditional IPOs hit their highest level ever (at $142 billion) with 27 issues raising more than $1 billion. Special purpose acquisition companies (SPACs) raised even more than the traditional listings ($145 billion). Deal count was at its highest level since the heady days of 2000. PE saw all-time highs in both deal count and proceeds raised. VC stats also reached multi-decade records.

Yet, by the end of the year, market sentiment had changed with the onset of Omicron and concerns about inflation. Any first-day pops enjoyed by new issuers vanished and most newly-minted stocks finished in the negative. In fact, IPOs averaged a negative 8 percent return, the worst result in over a decade. The flow of new issues started to dry up. Aftermarket demand fluctuated.

There were some areas of resilience as the market started to sag. Consumer discretionary IPOs gained over the year. But technology and healthcare both finished in the negative. 

Read our Q4’21 report to explore:

  • IPO activity and issuances in the healthcare and technology sectors
  • Venture capital and private equity activity and proceeds
  • Future trends including ESG, SPACs, crossovers, and a 2022 outlook
Between the slowdown in activity and the uncertainty surrounding markets, some pre-IPO candidates have started to delay their plans, switching their focus towards optimizing IPO readiness. We are seeing a lot of private market companies talking to investors about crossover rounds that will allow them to continue to rapidly grow without yet tapping public markets.
Conor Moore, National Leader, KPMG Private Enterprise

About the IPO Insights Report Series

The IPO Insights report series delivers the latest information and analysis on quarterly IPO activity and performance to inform business leaders looking take their companies to the next level.

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