The all-time biggest IPOs, largest IPOs of 2022, and top IPOs to watch in 2023
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The most obvious benefit of initial public offerings (IPOs) a company can get is the possibility to raise money to use for the business growth. That’s why many companies opt for IPO when considering different development strategies.
2021 was a record-breaking year as per IPO activity — the total number of global IPOs reached 2,436 with $459.9 billion of proceeds. Unfortunately, 2022 wasn’t as favorable. However, it seems like 2023 will give the IPO market a fresh start as companies around the world prepare to go public.
This article is devoted to the most anticipated upcoming IPOs of 2023 and the investment opportunities they bring. It also provides an overview of the IPO market and its best- and worst-performing companies in 2022. Additionally, it describes the top 4 largest IPOs that made history.
Highlights:
- The 2022 IPO activity was affected by a number of unfavorable market conditions like rising interest rates, decreased valuation, and increased volatility.
- IPO activity, the average deal size, and the number of large IPOs significantly decreased in 2022.
- The market is awaiting IPO trends for 2023, including diversification of IPO sectors, ESG-focused IPOs, and a Chinese IPOs boost.
- The most anticipated upcoming IPOs to watch in 2023 include Stripe, Reddit, Chime Financial, TripActions, and Discord Inc.
- The top 4 largest IPOs of all time include Saudi Aramco, Alibaba, SoftBank Corp, and ICBC Bank.
The state of the IPO market in 2022: Facts and statistics
The following wrap-up and describe the state of the 2022 IPO market:
- Negative market conditions affected global IPO activity. This includes increased volatility, rising interest rates, decreased valuation, and the poor performance of some companies that went public in 2021.
- IPO activity dropped. There were 1,333 IPOs with total IPO cash values of $179 billion, reflecting decreases of 45% and 61%, respectively, on a year-over-year basis.
- The average deal size shrank. There was less than half the number of IPOs in 2022 than the previous year.
- Investors shifted focus to less risky assets. In particular, venture capital funding for startups suffered a 50% year-over-year drop.
- The number of large IPOs decreased. A number of mega deals were postponed or canceled because of lowered valuation and poor stock market performance.
- The technology sector led by a number of IPOs. About 23% of deals were in the technology sector.
- The energy sector led by proceeds. About 22% of proceeds were raised by the energy sector.
- Certain markets performed better than others. More specifically, Mainland China, the Middle East, and some ASEAN countries had several successful IPOs and performed relatively well.
However, even though these numbers illustrate a dramatic decline from 2021, the number of IPO deals increased by 16% in comparison with pre-pandemic 2019.
The biggest, best- and worst-performing IPOs in 2022
Below you’ll find an overview of the IPOs that raised the most money, performed the best, and the worst in 2022.
The biggest IPOs of 2022
Company name: LG Energy Solution, Ltd.
Money raised: $10.7B
After-market performance:
– 1-day: 68%
– 1-month: 40%
– Current: 47%
Company name: Porsche AG
Money raised: $8.7B
After-market performance:
– 1-day: 0%
– 1-month: 21%
– Current: 14%
Company name: DEWA
Money raised: $6.1B
After-market performance:
– 1-day: 16%
– 1-month: 10%
– Current: -7%
The best-performing IPOs of 2022
Company name: Jinko Solar Co., Ltd.
Money raised: $1.6B
After-market performance:
– 1-day: 111%
– 1-month: 132%
– Current: 198%
Company name: Shanghai United Imaging Healthcare Co., Ltd.
Money raised: $1.6B
After-market performance:
– 1-day: 65%
– 1-month: 52%
– Current: 64%
Company name: Hygon Information Technology Co., Ltd.
Money raised: $1.6B
After-market performance:
– 1-day: 67%
– 1-month: 55%
– Current: 17%
The worst-performing IPOs of 2022
Company name: Life Insurance Corp of India
Money raised: $2.7B
After-market performance:
– 1-day: -8%
– 1-month: -29%
– Current: -23%
Company name: Corebridge Financial Inc.
Money raised: $1.7B
After-market performance:
– 1-day: -1%
– 1-month: -5%
– Current: -4%
Company name: CALB Co., Ltd.
Money raised: $1.3B
After-market performance:
– 1-day: 0%
– 1-month: -38%
– Current: -47%
Now let’s have a look at these IPOs in more detail.
The biggest IPOs of 2022
- LG Energy Solution, Ltd.
- Porsche AG
- DEWA
1. LG Energy Solution, Ltd.
Date: January 14, 2022
Value: $10.7B
Industry: Industrials
LG Energy Solution Ltd. is a battery company headquartered in Seoul, South Korea. It produces automobile batteries and advanced energy storage systems. After going public and raising $10.7 billion, LG Energy Solution became South Korea’s third most-valuable company after Samsung and SK Hynix Inc.
Now the organization is using the profit from the IPO to improve its manufacturing processes, research, and development, and expand its global presence in the energy storage market.
2. Porsche AG
Date: September 28, 2022
Value: $8.7B
Industry: Auto
Porsche AG, a German luxury automobile manufacturer, launched an initial public offering of its shares on the Frankfurt Stock Exchange on September 28, 2022. It became one of the largest and most targeted IPOs in Europe since a minor Glencore Plc went public in 2011.
The funds raised by the company will be used to finance future expansion, as Porsche pursues its goal of becoming a leader in electric mobility.
3. DEWA
Date: April 6, 2022
Value: $6.1B
Industry: Utilities
Dubai Electricity and Water Authority (DEWA) is the largest electricity and water utility in the UAE. In March, the company announced its plan to sell a 6.5% stake by offering 3.25 billion shares in its public offering, which raised an initial $6.1 billion.
After going public, DEWA became the largest publicly listed utility in the region and significantly increased its market capitalization. It can now provide investors with a low-cost entry point into a growing Middle East market.
The best-performing IPOs of 2022
- Jinko Solar Co., Ltd.
- Shanghai United Imaging Healthcare Co., Ltd.
- Hygon Information Technology Co., Ltd.
1. Jinko Solar Co., Ltd.
Date: January 26, 2022
Value: $1.6B
Industry: Energy
Jinko Solar is a leading Chinese solar-energy panel manufacturer. The company demonstrated one of the most successful IPO performances in 2022. On the first trading day, it closed 111% above the issue price and then 198% a year later.
Mr. Xiande Li, Jinko Solar’s CEO, said the revenue growth would let them scale, grow, and boost competitiveness. They also want to strengthen their leading position in the global photovoltaics industry.
2. Shanghai United Imaging Healthcare Co., Ltd.
Date: August 9, 2022
Value: $1.6B
Industry: Healthcare
United Imaging Healthcare is a medical technology provider that offers solutions for hospitals and clinics. The company became the seventh Chinese listing with an offering larger than $1 billion in 2022. The stock also had the third-best initial session in China, closing 65% above the issue price.
With the proceeds from the share sale, Shanghai United Imaging Healthcare wants to invest in a medical equipment fund, research and development projects, and its sales network.
3. Hygon Information Technology Co., Ltd.
Date: August 2, 2022
Value: $1.6B
Industry: IT
Hygon Information Technology is a leading Chinese security and cloud computing provider. Its IPO became one of the best-performing in the second half of 2022, closing 67% above the issue price on the first trading day.
The IPO has helped Hygon to become a publicly traded entity, allowing the firm to tap the capital market and better undertake technological upgrading and the expansion of business.
The worst-performing IPOs of 2022
1. Life Insurance Corp of India
Date: May 12, 2022
Value: $2.7B
Industry: Insurance
Life Insurance Corporation of India (LIC) is an insurance and investment company. Going public, it raised $2.7B, becoming India’s largest and the world’s fourth-largest IPO in 2022.
However, the company’s shares dropped nearly 8% on the first trading date and then plummeted by 23% by year’s end. Life Insurance Corporation of India’s Chairman, M. R. Kumar, commented that they weren’t expecting a big listing as markets were jittery.
2. Corebridge Financial Inc.
Date: September 14, 2022
Value: $1.7B
Industry: Insurance
Corebridge Financial provides life insurance, retirement solutions, and brokerage services. The company’s IPO was one of the largest in the US in 2022 — but one of the worst-performing. It was closely watched by investors and venture capitalists looking forward to a revival in U.S. listings.
However, after raising $1.7B, shares of Corebridge Financial opened 2% below the IPO prices in their New York Stock Exchange debut.
3. CALB Co., Ltd.
Date: September 28, 2022
Value: $1.3B
Industry: Energy
CALB Co. is a China-based company engaged in the production and sales of energy vehicle batteries and energy storage scenarios (ESS) products. The firm raised about $1.3 billion after pricing its IPO at the bottom of its marketed range.
Although it was the largest IPO in Hong Kong in 2022, the company’s shares stock ended flat on its first day of trading. Despite the poor performance, CALB plans to allocate about 80% of the funds to increasing production.
Initial public offering outlook for 2023
It seems like 2023 offers the IPO market a fresh start with some promising flotations lined up. Here are the expected trends:
- Rising demand for IPOs. The year 2022 wasn’t the best for IPOs, and that’s why many companies were waiting for more favorable conditions. However, the demand has been growing steadily, and now more and more investors are searching for promising firms that are planning to go public.
- A quiet first half of 2023. Adena Friedman, President of Nasdaq, commented that they hope the second half of 2023 becomes an opportunity for companies to get out, but they also expected a quiet first half.
- Diversification of IPO sectors. Technology continues to improve, and more companies from different industry sectors are becoming eligible for an IPO. That’s why companies from industries like alternative energy, medical technology, and biotechnology may decide to go public.
- Chinese IPOs boost. Chinese companies raised a record amount in IPOs in 2022. This trend is expected to continue throughout 2023, especially with the new Shanghai-London Stock Connect, which allows dual listings.
- ESG-focused IPOs. Organizations focusing on sustainability are predicted to be in high demand by investors. That’s why we’re likely to see more ESG (Environmental, Social, and Governance) companies going public in 2023.
The most anticipated IPOs of 2023
Here are the companies that are going to hit public markets in 2023:
- Stripe Inc.
- Reddit Inc.
- Chime Financial Inc.
- TripActions Inc.
- Discord Inc.
1. Stripe Inc.
Expected IPO date: TBA
Expected value: $74B
Industry: Finance
Stripe is a payment processing firm with an internal valuation of about $74 billion. The company earned its fame on Wall Street by recording over 12 billion in revenue in 2021, a hostile time for fintech companies.
It also laid off 14% of its employees during the “fintech winter” of 2022, demonstrating that they’re a viable investment for the long term. Now the company stands as the most targeted IPO by investors, though it’s also speculated to enter into IPO only in 2024.
2. Reddit Inc.
Expected IPO date: TBA
Expected value: $10-15B
Industry: Social media
Reddit is an American social media site/application with news aggregation, discussion threads, and meme stocks. In its latest funding round, it was valued at $10 billion.
Thus, it’s not going to be the biggest upcoming IPO, but with cash beginning to burn a hole in investors’ pockets, Reddit has the chance to shine and fly high with its 2023-2024 IPO.
3. Chime Financial Inc.
Expected IPO date: TBA
Expected value: $35-45B
Industry: Finance
An American provider of mobile-banking services and financial products, Chime Financial, is another big-name IPO expected in 2023 or 2024. Its estimated valuation is between $35-$45 billion.
Similarly to Stripe, Chime cut its labor force by 12%, showing its commitment to an IPO. The company’s CEO, Chris Britt, commented that they have “every intention of being a large, independent company.”
4. Navan (formerly TripActions)
Expected IPO date: Spring 2023
Expected value: $12B
Industry: Cloud computing
Navan is a travel, corporate card, and expense management solution that helps businesses make data-driven decisions, spend less on travel, and even reduce carbon emissions. In the last quarter of 2022, the firm raised $400 million, mainly receiving money from Goldman Sachs.
The company’s most recent funding round showed a valuation of $12 billion, positioning it well for a successful IPO. However, there are rumors that IPO might take place not earlier than 2024.
5. Discord Inc.
Expected IPO date: TBA
Expected value: $15B
Industry: Messaging, software solutions
Discord Inc. is an instant messaging social communication platform that planned to launch its IPO the previous year. However, unfavorable conditions of the 2022 stock market forced the company to postpone its decision to hit public markets.
Nevertheless, once the market gives the green light for IPOs in 2023, Discord will move ahead, trying to raise an estimated $15 billion.
The 4 largest IPOs of all time
Now, let’s quickly review the top 4 IPOs that made history as the largest ones (based on the list of 25 largest IPOs made by Renaissance Capital).
- Saudi Aramco, $25.6 billion (2019). Saudi Aramco is a Saudi Arabian oil and energy company that went public in December 2019. Initially, the company sold 3 billion shares and raised $25.6 billion. Later, the company sold an additional 450 million shares and the raised sum reportedly reached $29.4 billion. It was officially listed on the Saudi Stock Exchange (Tadawul). As of September 2023, Saudi Aramco’s market cap is estimated at $2.25 trillion.
- Alibaba, $21.7 billion (2014). Before Aramco’s IPO, Alibaba’s public offering was considered the biggest in history. The company went public in September 2014 and had a lot of hype around it, which allowed underwriters to sell more shares four days after the IPO and raise the IPO value to $25 billion. Unlike most technology companies being listed on NASDAQ, Alibaba was officially listed on the New York Stock Exchange (NYSE). As of September 2023, Alibaba’s market cap is $242.6 billion.
- SoftBank Corp, $21.3 billion (2018). SoftBank Corp is a Japanese company that provides a variety of communication services, such as fixed-line and mobile communication. It went public in December 2018 and raised more than $21 billion. It was officially listed on Tokyo Stock Exchange. However, the company’s stock fell about 14.5% on its first trading day. As of September 2023, SoftBank’s market cap is $65.7 billion.
- ICBC Bank, $14 billion (2006). The Industrial and Commercial Bank of China (ICBC) is a multinational company that provides various financial services. It went public in October 2006 and was initially listed on Hong Kong Stock Exchange (HKG), a member of HKEX group. Apart from Hong Kong Exchange, ICBC was simultaneously listed on Shanghai Stock Exchange (SSE), which allowed for raising $5 billion in capital additionally. As of September 2023, ICBS Bank’s market cap is $210.9 billion.
FAQ
Jinko Solar, Shanghai United Imaging Healthcare, and Hygon Information Technology are among the best-performing IPOs in 2022 with current after-market performance of 198%, 64%, and 17%, respectively.
The list of the most anticipated upcoming IPOs to watch includes Stripe, Databricks, Reddit, Instacrt, Discord, and Chime Financial.
The largest and most successful IPOs in the world belong to Saudi Aramco ($25.6B), Alibaba ($21.8B), SoftBank ($21.3B), Visa ($17.4B), and AIA Group ($17.8B).
No. Investment in an IPO can be risky as the IPO market is often volatile and unpredictable. That’s why it’s important to do research and consult specialists before deciding to invest.
Yes. When investors take part in an IPO, they become shareholders of a company that went public. As shareholders, they can either sell their shares at a profit on the stock market or get dividends. However, there’s no guarantee of return on a company’s IPO.
Many IPOs fail because of a lack of understanding of the market and too many risk factors. Additionally, companies often overestimate the demand for their product, miscalculate growth potential, and think they’ll have easy access to debt and equity markets.
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