Survival of the fittest Survival of the fittest\images\insights\video\runner-woods-smal.jpg April 28 2023 March 10 2023

Survival of the fittest

In the IPO market, only the best business models survive.

Published March 10 2023
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Video Transcript
Question: How is the IPO market expected to perform this year?
Jordan Stuart: In 2021, there was a record IPO market. More than 700 IPOs went public, raising hundreds of billions of dollars. In 2022, we saw only 70 IPOs go public, raising less than 10 billion dollars. We think that this year, you should start to see a recovery in the IPO market, but it'll take some time. This is the process in which we think is healthy for the IPO market in the sense that this churn happens. Think of 1998, how many dot coms went public and how many survived? This is healthy for any modern economy that develops new ideas, ideas that solve society's problems with profitable solutions. This is the churning process where good companies with really good ideas need to have durable business models, and those business models are going to be tested throughout this process. In this year, we expect a similar, probably quiet year, while the market absorbs the 2021 year, and we expect things to start to turn up, as we've seen in the past, in either nine to 12 months after the market bottoms.
Tags Equity . Markets/Economy .

Views are as of the date above and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.

Investing in IPOs involves special risks such as limited liquidity and increased volatility.

Federated Advisory Services Company