SEOUL, Feb. 27 (Korea Bizwire) — The number of initial public offerings (IPOs) and the amount of funds raised from the process in 2022 decreased sharply due to market uncertainty caused by inflation and monetary tightening in major countries, data showed Monday.
A total of 70 companies made their debuts on the main KOSPI and the secondary tech-heavy KOSDAQ markets last year, down 21.3 percent from 89 companies the previous year, according to the data from the Financial Supervisory Service (FSS).
The total amount of money raised by IPOs also decreased by 20.7 percent on-year to 15.6 trillion won. This marked the first contraction since 2018, the data showed.
The decline is blamed on growing uncertainty stemming from inflation, aggressive monetary tightening in major countries and geopolitical risks, such as the war in Ukraine, all of them weighing on market sentiment and stock indexes.
Last year, 13 companies withdrew their bids to go public due to unfavorable market conditions and investors’ lukewarm response.
This marked the most in five years and a sharp increase compared with two canceled IPO attempts in 2021, according to the data.