TECH - IPO Revival In 2024: Plaid Chime And Kim Kardashian's Skims Among Potential Market Movers | Benzinga
After a subdued couple of years that followed a stellar performance in 2021, the market for initial public offerings (IPOs) is expected to recover some ground in 2024.
The market for new listings was, during 2022 and 2023, hit by rising inflation and interest rates, which raised funding costs and made markets more turbulent, in turn making it more difficult to price IPOs.
Under these conditions, many companies looking to spin off businesses and private equity groups seeking to launch their holdings publicly decided to either pull or postpone planned IPOs.
The results were a massive downturn in IPO activity. Global IPOs in 2023 fell to a total 1,298 flotations, down from 1,415 in 2022, and only just over half of the 2,400 seen in 2021. In the U.S., 154 IPOs raised $25.8 billion in 2023.
It’s not difficult to understand why so many were pulled. Out of the 154 U.S. IPOs in 2023, nearly two thirds currently have share prices below the debut price. Half of those launched during the stock market rally of the fourth quarter have failed to regain their launch price.
Among the larger and better known companies, there were some major successes. ARM Holdings (NASDAQ:ARM), the U.K.-based chip designer, raised $4.9 billion and its shares are 150% above launch price, while Birkenstock Holding (NYSE:BIRK), the shoemaker ...