IPOX® CEO Josef Schuster in Kiplinger Personal Finance
IPOX® CEO Josef Schuster recently gave his insights in the latest edition of Kiplinger Personal Finance.
The IPO landscape, which saw a significant downturn in 2022, is witnessing a robust recovery in 2023, according to Josef Schuster, CEO of IPOX® Schuster in the latest edition of Kiplinger Personal Finance. Schuster reported that in 2022, IPO activity dwindled with only 65 deals, amassing less than $10 billion - a stark contrast to the 365 deals in 2021, which raised $134 billion.
However, the tide has turned in 2023. In the first nine months, the market has seen 76 IPOs raise close to $15 billion, marking a significant uptick in both the number and the value of IPOs. This resurgence is a promising sign for investors and companies alike.
IPOX® Schuster has been at the forefront of analyzing these market trends, offering crucial insights into the IPO ecosystem through valuable expertise, given the inherently volatile nature of IPOs, where careful investment decisions are paramount. This is reflected in the performance of the IPOX® 100 U.S. Index, making up the First Trust US Equity Opportunities ETF, which has outperformed the S&P 500 since its inception, while the general IPO landscape of all firms without IPOX’s rigorous selection process has lagged.
The decline in IPO activity in 2022 was notably influenced by a slump in the tech sector, which typically plays a significant role in the IPO market. However, the 2023 rebound indicates a broader market recovery, transcending sector-specific challenges.
Looking ahead, Schuster anticipates the IPO market to continue its upward trajectory through 2024. This positive outlook is underpinned by the expectation of new, high-profile IPOs and a growing appetite for public listings.
The resurgence in IPOs is a positive signal, but it calls for astute investment strategies and a keen eye on market dynamics.
