The IPO market is facing a significant downturn, with deal values sitting near their lowest levels since the 2008 Financial Crisis. Here’s a breakdown:

đŸ”č Since 2021, the 12-month moving average of monthly IPO deal value has dropped a staggering 90%, down to just ~$3 billion.

đŸ”č In 2023, US companies raised $20 billion through IPOs, and so far this year, the figure has slightly increased to $26 billion—but still far below historical levels.

đŸ”č Even with the S&P 500 hitting 41 new all-time highs, IPO volume is crashing.

Why the Pullback?

Recession fears are driving much of the decline, with odds of a recession in 2025 rising to 50%.

Corporations are not confident about the economy, which has led to fewer companies going public.

This lack of confidence signals broader concerns about the future economic outlook, as companies hold off on entering the market amidst uncertainty.

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