Global IPO activity hit an all-time high in 2021 with proceeds gaining a record $608bn.
However, with inflation forecast to average 7.4% this year, what does this mean for the IPO market?
Chris Biggs, Partner at Theta Global Advisors LLP, spoke to The Armchair Trader about the impact of inflation on the UK’s IPO market.
The rise in interest rates to combat inflation is expected to dent investor appetite for equity and businesses may delay their IPO until the rise in interest rates calms down.
Yet for many major companies, such as Reddit, Inc. and TPG, postponing an IPO may not be possible due to the years of planning they have done.
In this case, thorough preparation and an astute team of advisors is required to navigate the current business landscape.
Read the feature here: The Armchair Trader – Will higher interest rates undermine the Citys pipeline of IPOs