Companies That Had Their IPO In 2022
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Summary:
The lack of IPO activity in the US market in 2022 has been notable, with only a few exciting companies going public. An IPO can benefit a company by providing access to funds and boosting its public profile, but there are also significant disadvantages to consider. The largest IPO in history was Saudi Aramco in December 2019, which raised $29.4 billion.
Initial public offerings (IPOs) are a big deal for the companies that manage to reach such a stage. IPOs are a major step for a company to be able to access funding, helping them to grow their business to the next level.
Usually, there are a decent number of exciting companies that go public with their company shares. But in 2022, IPO activity fell dramatically, and there were few notable IPOs in the US market. Due to the lack of IPO activity, here we’ll explore the most notable IPOs of 2022 across global markets.
Notable IPOs of 2022
Corebridge Financial
Corebridge Financial had its IPO on September 15, 2022. $21 per share, and it raised $1.7 billion from the IPO.
Corebridge Financial is the life and retirement business of American International Group. It offers insurance products and retirement solutions. Its business is divided into four segments: Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets.
Mobileye
On Wednesday, January 26th, 2022, Mobileye had a successful initial public offering. The company priced its shares at $21 the night before and ended the first trading day with a closing price of more than 37%. This surge in demand was due to investors’ high interest in electric-vehicle stocks. With the IPO, the company raised 1 billion dollars.
Mobileye is a supplier of computer vision systems for the automotive industry. The company focuses on creating patented technology that uses camera-based systems to aid self-driving cars, providing features such as lane assist and intelligent cruise control. With its advanced technology and growing demand for electric vehicles, Mobileye has a promising future ahead of them.
LG Energy Solution Ltd.
LG Energy Solution Ltd., went public in January 2022, raising $10.7 billion and becoming the third most-valuable company in South Korea, after Samsung and SK Hynix Inc.
LG Energy Solution produces automobile batteries and advanced energy storage systems and now plans to use the funds from the IPO to improve its manufacturing processes, research, and development, and expand its global presence in the energy storage market.
Porsche AG
Porsche AG, launched an IPO of its shares on the Frankfurt Stock Exchange on September 28, 2022, raising $8.7 billion.
The German luxury automobile manufacturer became one of Europe’s largest and most targeted IPOs since a minor Glencore Plc went public in 2011. Porsche plans to use the funds raised to finance future expansion as it pursues its goal of becoming a leader in electric mobility.
DEWA
Dubai Electricity and Water Authority (DEWA), the largest electricity and water utility in the UAE, raised $6.1 billion after selling a 6.5% stake in its public offering in April 2022.
By offering 3.25 billion shares, DEWA became the largest publicly listed utility in the region, significantly increasing its market capitalization. This move provides investors with a low-cost entry point into a growing Middle East market.
What is an IPO?
An IPO, or initial public offering, is when a private company offers its stocks for sale to the public for the first time. This marks the transition of a company from being privately owned to publicly owned. The IPO process is also known as “going public” or “stock launch”. Following the IPO, the company’s shares can be bought and sold on the public market.
Benefits and disadvantages of an IPO
Making an IPO is very big for any company, giving them the chance to grow, build their wealth, and boost their public profile. It also adds a certain level of credibility to the company name. However, there are also some serious disadvantages to consider. Here are a few other benefits and drawbacks of a company making an IPO.
What is the largest IPO in history?
The largest IPO (initial public offering) in history was the IPO of Saudi Arabian oil company, Saudi Aramco, which was launched in December 2019. The company raised $29.4 billion by selling 1.5% of its shares on the Saudi stock exchange, the Tadawul. The IPO surpassed the previous record held by Chinese e-commerce giant Alibaba, which raised $25 billion in its IPO in 2014.
What happened to the stock market in 2022?
The tech market fell heavily in 2022 due to inflation, fears of interest rates rising, and lowered optimism in the economy. The tech IPO market also fell sharply, declining over 90%. 2022 was a rough year for the stock market, with the S&P 500 index falling by 19 percent. This performance puts it among the 10 worst-performing years for the index in the last 90 years. The Nasdaq and Russell 2000 also saw significant declines, making it a challenging year for investors across the board.
How many IPOs were there in 2022?
There were 181 total IPOs from the US markets. A major downturn in comparison to 2021.
Key takeaways
- IPOs are significant for companies as they enable access to funding and help them grow their business to the next level.
- In 2022, the number of IPOs fell dramatically, and there were few notable IPOs in the US market.
- Notable IPOs of 2022 include Corebridge Financial, Mobileye, LG Energy Solution, Porsche AG, and DEWA.
- An IPO marks the transition of a company from being privately owned to publicly owned, and the company’s shares can be bought and sold on the public market.
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Allan Du is a personal finance writer passionate about helping people take control of their finances. Allan strives to present readers with the right knowledge and tools, so they can make informed decisions about their money and build wealth. When he is not writing about finance, Allan enjoys pursuing his other interests, including powerlifting, kickboxing, and investing. He is an active follower of economic and political trends, always keeping watch on the latest developments that could impact the financial world.
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