Discover the potential upcoming IPOs in 2023 and take a look back at the IPO market in 2022.
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IPO market outlook 2023: Will we see a recovery?
There are hopes that the IPO market will stage a recovery in 2023 thanks to a backlog of companies in the pipeline that plan to go public after delaying their plans in 2022.
Nasdaq CEO Adena Friedman said at the recent Reuters NEXT conference that there are around 200 companies waiting to go public on the Nasdaq, although this is below an average pipeline size of between 250 to 300 in recent years. Lynn Martin, the president of Intercontinental Exchange’s New York Stock Exchange, described the pipeline as ‘tremendous’. Elsewhere, Laura Cha, the chairman of HKEX which runs the Stock Exchange of New York, has said around 100 companies are preparing to list.
However, the landscape remains challenging considering inflation remains high, rates continue to rise and economic growth is slowing, all of which is fuelling fears of a recession in 2023. Companies have managed to muddle through and delay their listing plans in 2022 due to the tough macro-economic climate and will continue to wait in 2023 until conditions improve. That suggests the IPO market could remain muted in early 2023 and that any significant revival is more likely to occur in later on in the year – and contingent on the economic outlook improving.
Investors are currently favouring companies that can deliver resilient profits and cashflow during tougher times over those with growth potential and this will be an important consideration for any company willing to set sail in what will be rough seas in 2023.
Find out what happens on the day of an IPO
Beware the SPAC in 2023. We have seen the surge in SPAC listings in recent years abate and almost grind to a halt in 2022. Many of those that have listed are running out of time to find a suitable target and take a company public, and those that have managed it have not performed well and found it more difficult to secure PIPE financing – all of which will be exacerbated further in 2023. We are likely to see more SPACs fail and return funds to investors in 2023 and fewer new blank cheque companies coming to market.
As for the tensions between the US and China, hopes have risen that the pair can come to a mutually agreeable way for Chinese firms to be audited and to revive the flow of firms choosing to list on American exchanges. Beijing and Washington signed a pact in 2022 that has allowed US regulators to evaluate the accounting firms used by Chinese companies, although differences remain between the two and neither side appears fully satisfied. For now, the threat that Chinese companies like Alibaba, NIO and JD.com could be booted off US exchanges has fallen in 2022 but it is still present. However, with the US and China also sparring over a variety of other topics from semiconductor chips to Taiwan, the situation remains fragile and could continue to weigh on confidence among Chinese companies hoping to tap American investors in 2023. Ongoing regulatory pressure, COVID-19 disruption and slowing economic growth could also give Chinese firms more reason to reconsider their IPO plans.
Upcoming IPOs 2023
See the top upcoming IPOs by potential market capitalisation.
Estimated market cap: $74 billion
Stripe filed to go public in July 2021, but has delayed its listing due to various unforeseen events and market volatility. There is still no set plan for Stripe’s IPO date, but that hasn’t stopped the excitement building around its potential 2023 listing.
Learn more about Stripe’s IPO
Estimated market cap: $60 billion
SoftBank Group is expected to list its ARM Ltd segment, in an IPO that could raise as much as $60 billion. However, its likely the company will wait until other chip stocks have regained some of their losses before listing
Learn about the ARM IPO
Estimated market cap: $60 billion
Vietnam’s homegrown electric-vehicle maker filed for a US IPO on December 6 2022. Although there’s no known date, it’s likely the company will be aiming to complete the listing in the first few months of the year.
Learn about the VinFast IPO
Estimated market cap: $50 billion
Although TikTok’s IPO is one of the most highly-anticipated listings for 2023, it remains unlikely it will happen anytime soon. The company is still grappling with regulatory issues surrounding the company’s use of data.
Find out more about the TikTok IPO
Estimated market cap: $40 billion
Chime was planning its IPO for March 2022, but that was put on hold amid the market uncertainty. The company was last valued at $25 billion during a private funding round, although it’s still aiming for up to $40 billion as a target IPO value.
Discover more about the Chime IPO
Estimated market cap: $33 billion
Revolut was expected to list in 2022, but a spokesperson said the company was waiting until ‘the time is right’. The company’s last know valuation was $33 billion and has not publicly made a commitment to an IPO plan
Estimated market cap: $31 billion
Databricks is yet another company that was planning to list in 2022 but was pushed back until 2023 due to market conditions. In October 2022, Databricks trimmed its internal share price, lowering its implied valuation to $31 billion.
Learn more about the Databricks IPO
Estimated market cap: $14.2 billion
Instacart’s valuation is the subject of much speculation. When it filed to go public in May, it was thought to be worth $39 billion, but as we go into the new year, valuations sit at around $24 billion.
Learn more about the Instacart IPO
Estimated market cap: $15 billion
Reddit filed to go public in late 2021 but changed its plan in 2022 due to the market meltdown that occurred following Russia’s invasion of Ukraine. There’s still been no updated IPO plans.
Find out more about Reddit’s IPO
Estimated market cap: $15 billion
The date for the Discord IPO has not yet been announced, but it looks likely that a listing on either the NYSE or Nasdaq could happen in early 2023. Its last funding round in September 2021 valued it at some $15 billion.
Discover more about the Discord IPO
Global IPO market summary 2022
It was a tough year for the IPO market in 2022. We saw the number of IPOs plunge 45% to 1,333 and the amount of proceeds raised dropped at an even steeper rate of 61% to $179.5 billion, according to EY.
Learn about what an IPO is and how it works
More companies shelved their ambitions to go public because the bulls gave way to the bears in 2022 as market conditions became much more difficult thanks to high inflation, rising interest rates and slower growth. That shook confidence in the markets, reduced appetite for riskier opportunities and tested valuations. Those that did take the plunge found it more difficult to raise cash, which led to smaller average deal sizes.
It is important to note that the fall in IPO activity in 2022 followed on from a record year in 2021 and that activity is still running above pre-pandemic levels.
The Americas IPO market, which is dominated by the US, experienced its worst year since the financial crisis while Europe suffered an even bigger year-on-year fall in activity as geopolitical turmoil took its toll. Asia-Pacific remained busy and accounted for over 60% of global IPOs in terms of both the number of deals and the amount raised, with China celebrating another record-breaking year in 2022, according to EY.
US IPO market was choked in 2022
Just 175 companies went public on US exchanges in 2022, according to Stock Analysis, down 83% from 2021 when we saw a flurry of new listings as companies looked to capitalise on the bull run and more favourable market conditions.
Of the companies that did list on US exchanges in 2022, according to Stock Analysis, around half of them have lost ground since going public. However, almost half of all US listings this year have been made by Special Purpose Acquisition Vehicles, better known as SPACs, that are trading around their listing price as investors wait for them to complete a merger with a company that wants to go public. Stripping out the SPACs, almost 80% of new US listings in 2022 have seen their value fall.
Discover what a SPAC is and how it works
In turn, the poor performance delivered by the majority of those that did take the plunge prompted more companies to delay their plans. In fact, more than half of all companies that filed to go public in the US in 2022 ended up withdrawing their IPOs, according to PricewaterhouseCoopers.
Plus, the number of new US listings was also choked by fewer listings from China after the US ramped-up pressure to get them to open their books to US auditors, while scrutiny of new listings increased following several smaller IPOs from the country that led to unexplained explosions in value.
Largest IPOs in 2022
Here’s a look back at the ten largest global listings in 2022.
- LG Energy Solution - $10.7 billion
LGES shares began trading on the Korea Stock Exchange (KRX) in January 2022 at an IPO price of $249. The IPO raised $10.76 billion, giving LGES a valuation of $55 billion
- China Mobile - $8.8 billion Fchi
In January 2022, China Mobile listed on the Shanghai Stock Exchange at 57.58 yuan ($9.06) having been delisted from the NYSE. The company raised the equivalent of $8.8 billion, making it one of the largest Chinese onshore listings
- Porsche AG - $8.7 billion
Dr. Ing. h.c.F. Porsche AG listed on the Frankfurst Stock Exchange (Deutsche Borse) in September 2022 at an offer price of €82.5. It raised €9.2 billion, giving the company a valuation of €75.2 billion. Read more about the Porsche IPO
- Dubai Electricity and Water - $6.1 billion
Dubai’s DEWA utility company listed on the Dubai Financial Market (DFM) in April 2022, in one of the largest IPOs since Aramco. It sold shares at 2.48 dirhams each ($0.68) raising $6.1 billion and giving the company a market value of $33.8 billion
- CNOOC - $4.4 billion
The Chinese offshore oil and gas producer completed its listing on the Shanghai Stock Exchange in April. The company raised 28.08 billion yuan ($4.41 billion) after selling shares at 10.8 yuan each
- Life Insurance Corporation of India - $2.7 billion
Shares of LIC started trading on the National Stock Exchange of India (NSE) in May at 949 rupees. The IPO raised $2.7 billion, which was far less than expected, but still gave India’s largest insurer a valuation of 5.54 trillion rupees or $71.54 billion
- China Tourism Group Duty Free - $2.1 billion
The world’s largest retailer listed at HK$158 ($20) on the Hong Kong Stock Exchange in August, raising HK$16.2 billion – the equivalent of $2.1 billion. It was the exchange’s largest IPO of the year
- Borouge Plc - $2 billion
Borouge successfully listed on the Abu Dhabi Securities Exchange in June in what was the Middle East’s largest petrochemical IPO. It raised over $2 billion off a final offer price of 2.45 AED ($0.67), giving Borough an implied value of $20 billion
- Americana Restaurants International - $1.8 billion
The quick-service restaurant operator raised $1.8 billion from its December IPO, which saw it list on the Arab world's two largest stock markets: Saudi Arabia's Tadawul bourse and the UAE's Abu Dhabi Securities Exchange
- Corebridge Financial - $1.7 billion
AIG spun off its life and retirement business via an IPO, creating Corebridge International, which listed on the NYSE in September at $21 per share. It raised over $1.68 billion and valued Corebridge at $13.6 billion
- Tianqi Lithium Corp - $1.7 billion
The Chinese supplier of rechargeable battery components listed on the Hong Kong Stock Exchange in July at HK$82 ($10.45) per share. The IPO raised $1.7 billion, making it the second largest Hong Kong-based IPO for the year
- TPG Inc - $1.1 billion
Private-equity firm TPG listed on the Nasdaq in January 2022, pricing its shares at $29.50. It raised over $1 billion from the IPO, giving it an assumed valuation of $9.1 billion
- Mobileye Global - $990 million
Mobileye held its IPO in October, listing shares on the Nasdaq at $21 each. The electric-vehicle firm raised $990 million, giving it a valuation of $17 billion – well below its original $50 billion estimate. Read more about the Mobileye IPO
- Bausch and Lomb - $712 million
In May 2022, eye health company Bausch and Lomb went public on the NYSE. The company sold its shares at $18, raising $712 million and valuing the company at $6.48 billion. Learn more about Bausch and Lomb’s IPO
- Excelerate Energy - $384 million
The liquefied natural gas provider raised $384 million when it listed on the NYSE in April. The company sold 16 million shares at $24 each, valuing Excelerate at $2.54 billion