Number of PE-backed IPOs drop by 50% YoY in first half of calendar 2022

The major PE-backed IPO so far this calendar has been that of logistics major Delhivery. It saw Carlyle, China Momentum Fund, Softbank sell stakes worth $131 mn

The number of initial public offerings (IPOs) involving stake sales by private equity and venture capital (PE/VC) investors halved year-on-year during the first half of calendar 2022. PEs sold stakes via seven IPOs worth a cumulative $423 million during the first six months, according to a report by IVCA-EY.

During the first half of calendar 2021, there were 14 PE-backed IPOs and exits totaling $1.4 billion. The deceleration in PE-backed IPOs was sharper when compared to the second half of last calendar, which saw 30 IPOs with PE-exits of $3.8 billion.

The major PE-backed IPO so far this calendar has been that of logistics major Delhivery. It saw Carlyle, China Momentum Fund, Softbank sell stakes worth $131 million. The quantum of share sale had to be lowered due to difficult market conditions.

A drop in PE-backed IPOs weighed on the overall value of PE/VC. During the first half, overall PE/VC exits fell 55 per cent (both sequentially as well y-o-y) to $9.6 billion, as per IVCA-EY.