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Sector-wide sell-off: IPOs from all but one sector have traded off in recent months

March 17, 2022

The IPO market set new records in 2021, but a recent sell-off has walloped new issuers across nearly every sector over the past 90 days and 30 days.

The sole sector with positive average returns, energy has produced just two IPOs since 2021, one of which was acquired shortly after its IPO (VEI). The remaining issuer, Aris Water Solutions (ARIS), averages a leading 47% three-month return, thanks to rising oil and gas prices.

The technology sector has fared the worst as investors abandon growth stocks. Valuation multiples have contracted across...

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