Initial public offerings have dropped precipitously from a year ago. Year to date, there have been 56 U.S. IPOs, raising $4.5 billion, for the period that ended Aug. 26. Last year, there were more than 280 deals with proceeds of about $96 billion.
IPO volume down this year
IPO pricing was strong last year with 397 offerings that raised more than $142 billion in proceeds. This was the largest number since 2000 and a record in dollar terms, according to Renaissance Capital, which tracks IPO data.
This year's volume decline comes as equity markets and valuations have dropped. Through Aug. 26, the Russell 3000 index's total return was -11.8%. Since the end of 2021, the price-to-earnings ratio has contracted to about 22 from more than 26. The P/E has expanded from 20 since the end of June.
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