The U.S. IPO market plummeted in 2022, with 181 deals raising $9 billion, including special-purpose acquisition companies (SPACs) and direct listings. According to Ernest & Young (EY), it hit a 13-year low by volume and a 20-year low by value.
The private equity firm TPG Partners LLC was the only company from our top 2022 Most Anticipated IPOs that went public last year. Forecasters, including us here at Financialmiddleclass.com, used the record-breaking 2021 public offerings market as a yardstick to come up with the 2022 top IPO prospects list.
The dismal performance of many 2021 IPOs, market volatility, and other unfavorable market conditions stopped heavyweights such as social media company Reddit, the chat App company Discord, and the enterprise software company Datababricks from going public.
Despite the 2022 disappointing IPO market, a handful of companies did manage to have successful IPOs. Mobileye and TPG Partners are our picks for FMC’s 2022 IPO Draft Class-Best Undrafted Company and 2022 IPO Draft Rookie of the Year, respectively. On average, both companies are trading at 36.66% from their IPO prices.
FMC’s 2022 IPO DRAFT CLASS: Best Undrafted Company
The American multinational technology company Intel spun out Mobileye, which makes technology for self-driving cars. The company went public on October 26 and raised $861 million. It trades at more than 57% of its $21 IPO price. Mobileye was amongst a few bright spots in the dud public offerings market.
FMC’s 2022 IPO DRAFT CLASS: Rookie of the Year: TPG Partners
Again, the private equity firm TPG Partners was the only company from our 2022 IPO Top Prospects list that went public last year. It was the biggest IPO last year, raising $1 billion.
The company went public on January 12 with an IPO price of $29.50; it trades now at $34.20 or 16.27% of its IPO price.
SPACs and direct listings that were the catalysts for the market for public offerings in 2021 plummeted last year due to rising inflation and interest rates, recession fears, and other headwinds.
