A toxic cocktail of slowing growth, rising inflation and belatedly hawkish central banks has resulted in the current dire performance of risk assets. During risk-off periods, capital tends to flow to larger, liquid assets. Initial public offerings (IPOs) are generally more illiquid than longer-established peers due to lock-ins and newly established share registers. It is therefore no surprise that the share prices of companies that listed in 2020 and 2021 have struggled, but what is surprising is the magnitude, with 84% of IPOs trading below their issue price.
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