The IPO market, which had shown signs of recovery, has been brought back to square one by surging bond yields and the sudden escalation of the Israeli-Palestinian conflict.
Under multiple crises, market volatility has intensified, reducing investors' risk tolerance and causing trading volumes, which were already sluggish this quarter, to plummet further.
According to data compiled by the media, the cumulative IPO financing amount in the US stock market from the beginning of last year to the present has been only $47.6 billion, which is less than the total financing amount in the last two months of 2021.
With the expectation of the Federal Reserve's tightening policy to be &#34;higher and longer,&#34; coupled with the Middle East tension leading to a rise in oil prices, the stock market performance has been lackluster, and the S&amp;P 500 index is expected to decline for the third consecutive month.
In September, ARM, a British chip company under SoftBank, soared 24.69% on its first day of listing in the US. Subsequently, other tech companies such as Instacart also performed well, injecting some vitality into the originally quiet IPO market. However, in less than a month, the slightly rebounding IPO market has cooled down again.
David DiPietro, Head of Private Equity Investments at T. Rowe Price, said to the media:
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&#34;I don't expect much IPO activity from now until the end of the year. Companies intending to go public must have great confidence in their forecasts for at least the next year, and considering the external factors that may affect the companies, this seems difficult to achieve.&#34;
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This month, several new stocks have performed poorly, with Buccheri Shoes, a well-established footwear brand backed by LVMH, plunging more than 10% on its IPO debut. Some analysts believe that the IPO market's winter may continue into next year.
Conor Moore, Head of Private Enterprise at KPMG, speculates that a window of opportunity may emerge in mid to late March next year.
Nevertheless, some companies are still willing to test the current environment. Medical payment software company Waystar and Hamilton Insurance submitted applications last week, while oil and gas producer Mach Natural Resources has set the price range for its initial public offering.
Other holding companies are also weighing different options, such as private financing. Meanwhile, those companies that are already listed can sell more shares or issue convertible bonds, but these measures can only partially fill the gap left by the weakness in the IPO market.

The IPO winter may continue until 2024.

Just had a short meeting, and the IPO window for US stocks has closed again.