A person checks his phone on May 27, 2022 on Wall Street near the New York Stock Exchange (NYSE) in New York.
Angela Weiss | AFP | Getty Images
The IPO market has been frozen for most of 2022 and there are no signs of a resumption.
Wednesday, software vendor Justworks And food retailers Fresh market The application for initial public offering was withdrawn. The two companies initially announced plans to release last year.of Short filing With the Securities and Exchange Commission, they said they would no longer pursue the sale of shares without providing a reason.
They have little to explain. After the banner year of 2020 and 2021Investors have shown no willingness to take on new issues amid this year’s market plunge, including last year’s record level of activity. The technology-intensive Nasdaq Composite index has fallen 28% so far in 2022, below the 20% off S & P 500.
This situation is very bleak for companies entering the market these days, especially those in and around the technology sector. The Renaissance IPOETFStates that it is tracking “the largest, most fluid, and newly listed US IPO,” plunging 46%.
according to Ernst & YoungGlobal IPO volumes fell 54% in the second quarter from the same period last year, but offering revenue plummeted 65%.
This year’s tech stocks and new IPOs
New York-based Justworks Revenue In the 12 months to May 2021, it increased by 32% to nearly $ 883 million. The company even recorded net income, which is rare for pre-IPO software companies.
With 159 stores in 22 states and a variety of meal kits, the Fresh Market has generated $ 1.4 billion. Revenue Throughout the first three quarters of 2021, it increased by 3.5% from the previous year.The company’s rivals include Albertsons and KrogerSpecialty grocery stores such as Sprouts Farmers Market and Trader Joe’s, Walmart When Target..
In May, Fresh Market announced that it would sell 67% of its company to South American retailer Cencosud for $ 676 million. The rest will be owned by existing shareholders, including Apollo Funds, which closed the company in 2016.