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HomeMarketEquity capital markets’ fourth-quarter dollar volume drops by more than two-thirds from...

Equity capital markets’ fourth-quarter dollar volume drops by more than two-thirds from peak levels

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Global equity capital market issuance fell sharply to $127 billion as of Dec. 19, down from $400 billion in the full fourth quarter a year ago, thus ending a weak year for capital raising as the bull market went bust in 2022.

That’s a drop of more than two-thirds, and few if any equity market transactions are on the calendar for the balance of 2022, with interest-rate hikes, inflation and the war in Ukraine creating strong headwinds for deal making.

So far in full-year 2022, equity capital markets have raised $582 billion, well below the $733 billion raised in just the first half of 2021.

The U.S. total for equity capital market issuance is $167.5 billion in 2022, down from $779 billion in 2021 and the lowest total in at least a decade, according to Dealogic.

With $1.8 billion in the deal, Americana Restaurants International Plc
AMR,

was the largest new listing globally in the fourth quarter, followed by the U.S. listing Mobileye Global Inc.
MBLY,
-4.23%,
the Israeli autonomous-vehicle unit of Intel Corp.
INTC,
-4.87%,
and by the $897 million IPO of Marafiq in Saudi Arabia.

Korea’s LG Energy Solution
373220,
-1.15%
ranked as the largest IPO of the year globally, followed by Porsche AG
P911,
-3.11%
and the Dubai Electricity and Water Authority
AE:DEWA.

Meanwhile, mergers and acquisitions totaled $3.6 trillion in 2022, down 38.8% from 2021’s record of $5.9 trillion.

Credit: marketwatch.com

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