Proceeds of IPOs Going to Secondary Market in NYSE Shockingly Plunge by 93%

New York Stock Exchange (NYSE) has seen IPO proceeds plunging sharply in 2022 due to volatility and market uncertainty that caused new listing companies to shy from the market.

According to the president of the New York Stock Exchange Lynn Martin in an interview at the Reuters NEXT conference, IPO proceeds in the world’s biggest exchange so far this year was down 93% compared to last year.

NYSE has more than 2,400 listed companies and over 3,000 exchange traded funds (ETFs).

According to Refinitiv, there have been 114 deals so far this year in the United States with the proceeds amount of $16 billion, compared to 872 deals in 2021 with the proceeds amount of $246 billion.

Surge in last year listings was mainly due to the boom in special purpose acquisition companies (SPACs), which came to a snail speed in 2022 amid rising inflation and interest rates. Moreover, SPACs have been drawing regulatory scrutiny as of late.

Martin said in an interview that there are many companies wanting to enter the market, but they are waiting for the volatility in the market to calm down.