As interest rate hikes, persistent inflation, and slow global economic growth continued to impact global equity markets, capital raising activity ticked up in the first nine months of 2023. Total global proceeds from equity issuance amounted to $318 billion with 3,887 offerings at the close of Q3 2023, a 1% decline in capital raised and 2% growth in deal volume compared to the same period last year.
The Industrials and Healthcare sectors took the lead in total proceeds raised in the first three quarters of 2023, with $49 billion and $47 billion, respectively. Consumer Staples posted the highest year-over-year growth (16%), while the Materials and Energy sectors continued to underperform with respective declines of 26% and 21% in total proceeds.
Global IPO activity remained sluggish in Q3 2023 due to the continued impact of inflationary pressures, tighter monetary policies, and slower economic growth. The average stock performance of 2023 IPOs is well below comparable figures from 2022, except at the six-month post-IPO period. The post-listing returns of 2023 IPOs also performed better in longer-term metrics, with the highest average gain of 44% posted at the six-month period.
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