WilmerHale – IPO Report, 2024

In 2023, the IPO market was heavily impacted by pessimism surrounding the Federal Reserve’s interest rate hikes, subdued business and consumer confidence, and geopolitical concerns. Despite an increase in deal activity with 117 IPOs completed (excluding SPACs and direct listings), this number was still lower than the total in 2021. Total gross proceeds in 2023 reached $19.0 billion, a significant increase from the previous year. The IPO market in 2023 was characterized by the dominance of emerging growth companies, accounting for 91% of all IPOs. The median offering size and annual revenue of IPO companies also saw a decrease compared to previous years, with a significant portion of IPOs raising gross proceeds of less than $25 million. Life sciences IPO companies in 2023 had a low percentage of revenue, highlighting the challenges faced by companies in this sector. Overall, the IPO market in 2023 was subdued compared to previous years, reflecting the ongoing uncertainty and challenges in the market.