Through the first quarter of 2023, market volatility, rising interest rates, and ongoing uncertainty around economic and geopolitical environments continued to impact equity capital-raising activity. Total global proceeds amounted to $99 billion with 1,229 offerings closed in Q1 2023, a 4% decline in value and a 1% increase in deal volume compared to the same period last year. This marks the lowest quarter in terms of proceeds since 2019.
Equity capital markets issuance from the financials sector accounted for $23 billion in total capital raised, a 38% growth from the same period last year. The industrials sector ranked second in total deal value by sector with $15 billion in total gross proceeds.
The average performance of Q1 2023 IPOs had positive returns on the first day and week of trading but are well below comparable figures in the previous two years, as inflation and interest hikes fueled broader volatility in the equity markets. Despite the slow start, average IPO aftermarket performance after one month performed better than shorter-term metrics.
In 2023 year-to-date, 37% of IPOs issued were priced in either the bottom end of their range or below their range. Meanwhile, the number of IPOs that priced above range is at 2.5%, the lowest figure recorded in the last five years.
Global Equity Capital Markets & IPO Activity: Q1 2023View Full Infographic
2023 Private Equity Outlook
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