Initial public offerings by U.S. tech companies have sunk to their lowest levels since the global financial crisis of 2008, as stock market volatility, soaring inflation, and interest rate hikes have soured investor sentiment toward new listings.
So far this year, just 14 technology businesses have listed their shares on public markets, compared to 12 in 2009. This year’s IPOs raised $507 million, the lowest amount raised through flotations since 2000. According to analysts, a sharp decline in stock market values has discouraged IT businesses from seeking stock market debuts. The Renaissance IPO index, which includes the largest and most liquid IPOs in the United States.
IPOs have fallen 50.4% this year, compared to a 23% decrease in the S&P 500 index. Investors’ desire for new equities has been muted by the poor after-market performance of 2021 IPOs. Financials and healthcare were among the hot industries for IPOs in the United States.