IPOs Have Stalled This Year

2023: An annus horribilis for IPOs! In 2023, there were 1,298 IPOs totaling $123.2 billion—a modest decline of 8% in volume and 33% in value compared with 2022, according to EY’s latest annual report on initial public offerings.
 

Specifically, the report notes that the Asia-Pacific region recorded 732 initial public offerings totaling $120.6 billion, representing declines of 18% in volume and 44% in value. 
 

The U.S. market is holding up better, with 153 transactions totaling $22.7 billion—a 15% increase in volume and a 155% increase in value.
 

In 2023, 136 IPOs were recorded in Europe, totaling $12.9 billion, representing a 20% decline in volume and a 32% decline in value compared to 2022.

France recorded 6 transactions in 2023 totaling $291.3 million, which is half as many transactions as in 2022.

The most recent listing is that of Stif, a specialist in explosion protection. Prior to that, the last listing took place in July with the debut of Vinpai, a specialist in natural ingredients, on Euronext Growth. This flagship segment for small and medium-sized enterprises hosted all five IPOs in 2023.  Meanwhile, the American cosmetics specialist Coty opted for Euronext’s professional segment to secure a dual listing in Paris (in addition to its listing in New York).

The technology and industrial sectors continued to dominate initial public offerings in 2023, accounting for 264 and 265 offerings, respectively, totaling $32.2 billion and $26.5 billion, while the materials sector held its ground with 160 offerings and $10.1 billion raised.
 

Among the major IPOs that won over the markets were those of chip giant Arm, Nextracker—a California-based solar technology company—and Klaviyo, a marketing automation company. However, the sector’s overall performance was disappointing, with an average loss of -25.3% in the third quarter. 
 

As for the healthcare sector, although some companies posted positive returns, others fell sharply, resulting in an average decline of -21.3%.
 

On the “flop” side, we can include Instacart, the technology leader in the North American grocery retail sector, whose stock was trading 19% below its initial public offering price at the end of the year.
 

Similarly, VinFast is a Vietnamese electric car manufacturer that is part of the Vietnamese conglomerate Vingroup. Following a spectacular initial public offering, VinFast’s stock price plummeted, losing nearly 34% of its value in two trading sessions, bringing the company’s market capitalization down to approximately $46 billion.

Finally, luxury sandal maker Birkenstock disappointed the markets. The company, owned by LVMH, set the price of its offering at $46 per share, valuing it at $8.6 billion. Birkenstock shares fell 13% at the time of its initial public offering. Originally seen as a potential catalyst for the IPO market, Birkenstock’s IPO was a huge disappointment. 

However, Birkenstock’s stock has managed to regain some ground since its initial public offering, closing at $50 on December 15, 2023—8.7% above its IPO price.