Equity capital raising has plummeted to the lowest levels for nearly 30 years as ongoing inflationary pressures, geopolitical instability and tighter monetary policies took their toll on markets.
Full year figures from the Association for Financial Markets in Europe (AFME) Equity Primary Markets and Trading Report European market data 2022 reveal a 61% drop in equity underwriting on European exchange during the year.
Meanwhile figures from S&P Global Market Intelligence show total global proceeds raised amounted to $421bn with 4,961 offerings closed in 2022, representing a 62% drop in total deal value and a 37% slide in deal volume compared to last year.
Both reports highlight IPO activity in decline, with AFME describing the Europe market as “exceptionally weak” and markedly different to a “robust” 2021.
IPOs accumulated €14.2bn in deal value in 2022, with the third quarter €9.1bn Porsche offering accounting for 64% of the total amount.
Globally, S&P found that most average performance changes for 2022 IPOs are slightly higher than comparable figures from 2021, but 2022 deals are underperforming other recent vintages, especially in longer-term metrics. The report blamed inflation and interest hikes for the downward trend.
While 2022 was a bad year for capital raising thanks to market volatility the reverse was true for daily equity trading.
AFME found the average daily equity trading on European main markets and multi-lateral trading facilities reached €91bn last year, which was a 9% increase compared to 2021.
Domestic market capitalisation of European listed shares stood at €14.7tn at the end of 2022, a 16% decrease from €17.6 at the end of 2021.
©Markets Media Europe 2023
