HomeFinancial MarketsGlobal IPO Market Disrupted By Banking Instability

Global IPO Market Disrupted By Banking Instability

The global IPO market remains in a slump amid the ongoing instability in the banking sector as well as growing concerns of an impending recession.

Data compiled by Bloomberg indicated that companies have raised just $19.7 billion via initial public offerings to date in 2023. This is a 70% drop from the same period last year and the lowest comparable amount since 2019.

In the United States, IPOs have raised just $3.2 billion so far this year; the steepest fall out of the global IPOs that were assessed in the Bloomberg report. While high inflation and the Federal Reserve’s aggressive interest rate policy deterred investors last year, uncertainty in the banking sector has added to investors’ concerns.

Udhay Furtado, co-head of ECM, Asia Pacific at Citigroup Inc., acknowledged the effect that the Federal Reserve’s consistently tight monetary policy has had on investors’ eagerness to invest. “Rates is the number one issue, and there is a clear debate around how long the tightening lasts or changes direction and at what speed,” Furtado explained.

Home Prices Rise for Second Straight Month

U.S. home prices increased for a second consecutive month in March, reflecting the sustained inventory shortage faced by buyers. This streak comes after seven...

Futures Rise as Debt Ceiling Deal Set for Next Challenge

U.S. futures advanced during Tuesday's morning session as investors wait for the U.S. debt-ceiling deal to be presented before Congress. Policymakers are under pressure...

Oil Remains Steady as Traders Await Approval of Debt Ceiling Deal

Oil remained little changed on Monday as traders wait to see if lawmakers approve the U.S. debt ceiling deal that policymakers agreed to on...