IPO Companies in 2022

Initial Public Offerings (IPOs) is the process through which a private company offers shares to the public for the first time. They can indicate the direction markets are heading, revealing which sectors are poised for growth and investment. It opens the door for investors to invest in companies on the rise whilst providing businesses with additional capital to grow. 

2022 was a disappointing year for the IPO market. Only 71 IPOs were completed, raising a total of $7.7 billion. This is a spectacular drop from the 397 deals and $142.4 billion raised in 2021. 

First it was a feast. And now it’s famine. But there are reasons for this decline. There was widespread caution spread amongst investors about the global economy, geo-political tensions, rising interest rates, and decreasing valuations. Some argue that this downfall was inevitable, given the stratospheric heights reached in 2021. 

The managing director at Thomas Ventures shared his thoughts on why this decline happened, stating that ‘There was a hangover from all the binge drinking in 2021.’ Indeed, the pendulum has swung the other way but 2022 has also been a year of growth for many businesses going public. 

Below we’re going to highlight the biggest IPOs in 2022 and underline the most notable IPO events that took place. 

LG Energy Solution Ltd was crowned the biggest IPO in 2022. After going public and raising $10.7 billion, the Seoul-based battery company became South Korea’s third most valuable company, ranking just behind Samsung and SK Hynix Inc.

The profits from the IPO are now being utilized by the organization to upgrade its manufacturing processes, boost research and development efforts, and broaden its international reach in the energy storage market.

Regarding performance, China’s Jinko Solar achieved the highest ranking. The stock closed 111% higher than its issue price on the first trading day, and by the end of the year, it was up 198%.

Porsche delivered a noteworthy performance since its IPO launch on September 28, raising $8.7 billion. This IPO became one of Europe's largest and most targeted since Glencore Plc went public in 2011.

At the other end of the spectrum, LIC, Delhivery and AGS Transact Technologies were some of the worst performing IPOs of the year, all trading below 25% of their issue price. 

Life Insurance Corporation of India had a particularly disastrous IPO performance. 

On the first trading day, the company's shares decreased by almost 8% and experienced a further 23% drop by year’s end.

2022 was a tough year for IPOs. Market instability and geopolitical issues, following a stellar previous year, played a significant role in this year’s decline. However, many still prospered, using 2022 as a launchpad for growth as they transition into 2023.

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