Successful IPOs of 2022

With thousands of companies trading on the NYSE, Nasdaq, and other stock exchange markets, stock buyers have much to consider before deciding on an investment opportunity. Companies consider an initial public offering or IPO to raise capital for expanding their operations or paying off debts, so does it always work?

This article will shed light on the most successful IPOs of 2022 and how they worked. So, keep reading to learn more about this topic.

What Makes an IPO Successful?

IPO markets experience a lot of ups and downs, according to the overall market’s performance. As a result, a company might reconsider an IPO or postpone it until it’s confident that it will deliver the desired results.

The IPO’s outcome will differ according to several factors, even in the same market. Here are some factors that show that an IPO was successful.

Capital Raised

The capital raised in an IPO is the amount of money the company could collect due to going public. When a company goes public, it usually aims at raising cash to meet its financial needs within 18 to 24 months. As a result, some companies would have a successful IPO with only $100 million raised in capital, while others wouldn’t be so successful after raising $1 billion after trading the stock.

Valuation

This is the fair evaluation of the company’s shares, and it’s highly dependent on the IPO timing and the market demand at that time. Accordingly, a company would postpone its IPO until market demand is high to guarantee it will raise the capital it needs.

Share Price Increase

Investors are mainly interested in the increase in the current share price from the IPO price. However, this appreciation or growth directly results from the management’s success in executing its plan to expand the company’s operations and increase its profits.

Yet, it’s highly dependent on the overall market conditions, so it’s best to compare annual prices to see how the stock performs.

Most Successful IPOs of 2022

Privately owned companies switch ownership from their founders to the investors in exchange for extra funding when they go public. During the IPO, the large investors are usually the ones who buy shares. However, common investors can purchase stock later.

With unfavourable market conditions in 2022, like the increased volatility and lower interest rate, IPO activity experienced a significant decrease. As a matter of fact, many companies that were planning an IPO in 2022 decided to postpone their plans, waiting for more favorable market conditions. Statistics show that the number of IPOs decreased in 2022 from 1035 to 181.

However, the year 2022 saw some new IPO market trends, like the success of Mainland China and Middle East IPO markets. These local markets attracted local investors, and some investments chose to be delisted from the US stock exchange for a better opportunity in these new markets. In 2023, concerns over market volatility, recession, and interest rates will significantly affect how the anticipated IPOs turn out.

Yet, despite the overall decline in the IPO market, some companies still performed well, achieving the success they hoped for when they went public. Here are the most successful IPOs of 2022.

Venus Pipes & Tubes IPO

Venus Pipes & Tubes is an Indian-based stainless steel manufacturer, working in the market for over 15 years. The company currently has 12 production lines implementing benchmark technologies to be able to compete in the local and international markets.

In May 2022, the company decided to go public to finance several projects regarding expanding its production capacity, optimizing its costs, and upgrading its production technology.

The issue price was suggested as Rs 326 on the Bombay Stock Exchange on May 11 and was available for two days.

The investment opportunity seemed favorable, as investors made offers for about 1.12% of the shares on offer. The stock opened at Rs 335 on May 24 and was listed at Rs 337.50 on the National Stock Exchange of India, with a 3.5% increase. The stock currently trades at about Rs 722.40, with more than 100% profit to investors.

LG Energy Solution IPO

Based in South Korea, LG Energy Solution is one of the world’s biggest battery manufacturers. The company started researching rechargeable batteries in 1992 and produced the first one in 1999.

In January 2022, the company decided to go public in the Korea Exchange after being valued at 70.2 trillion won, becoming South Korea’s third most valuable company. Shares were priced at 300,000 won each, which is the maximum of the regulatory filing suggested at the end of 2021, initially valued between 275,000 and 300,000 won or $216.19 and $252.36.

Funding would be used to optimize the company’s manufacturing process and improve the research and development practices. The company is also interested in expanding its presence and operations in the global energy storage market.

The listing was 2,023 times covered, granting the company funding of more than $10.7 billion when more than 4.4 million retail investors bid 114 trillion won to buy the company’s stock.

This is considered Asia's second-largest and most successful fundraising after Alibaba Group raised $12.9 billion when it was listed in Hong Kong in 2019. LG ended the day with its shares valued 68% higher. The stock currently trades at 520,000 won.

Porsche IPO

Porsche is a German automobile manufacturer specializing in high-performance race cars, sports cars, SUVs, and sedans. The company was founded in 1931 in Stuttgart, Germany, and has since produced more than 300,000 vehicles.

The company decided to go public to fund Volkswagen’s research towards manufacturing electric cars. By securing funding, it would become the world’s fourth-largest automobile maker.

In September 2022, Porsche decided to go public, offering stock at 82.50 euros per preferred share, which doesn’t give investors voting rights but would grant investors dividends before common shareholders.

The company offered 12.5% of its issued and outstanding share capital as preferred shares. This price represented the top range of the 76.50 to 82.50 euros suggested target range.

With the company valued at $74 billion, this IPO became Germany’s most significant public offering in 25 years. After being listed on the Frankfurt Stock Exchange, each share was valued at 93.28 euros, with almost 11% gains.

After the IPO, the Porsche stock price started to fluctuate, mainly because of some investors’ illicit actions. Moreover, some market experts believed the interest in sports cars wasn’t enough to drive the stock price upward.

Yet, with the company’s current interest in electric vehicles, now might be an excellent time to buy its stock, which currently trades at 55.56 euros.

TPG IPO

TPG is an alternative asset management firm that specializes in growth capital and different types of investments. The company was founded in 1992 and currently manages over $132 billion in assets.

In 2022, the company decided to go on the IPO route to benefit from the global low-interest rates, which would drive the leveraged buyout market forward. The company aimed for a valuation of $9.5 billion.

TPG decided to sell 28.3 million shares priced between $28 and $31. With the maximum stock price range, the company would raise $877.6 million, granting 40% to investors who planned to cash out. The founders would retain their shares and use the remaining money to expand the company’s operations.

In January 2022, the shares were listed on NASDAQ to be closed on January 18. However, the stock was expected to face a more challenging time due to the market’s volatility.

The stock was initially traded at $29.50 per share, an average of the suggested range, and the company raised $1 billion in equity. The company decided to issue 33.9 million shares, including 5.6 million shares that belonged to one investor, who eventually sold them. The stock is currently listed at $33.73, with a more than 15% increase in price over the past year.

Jinko Solar Co., Ltd.

Jinko Solar Co., Ltd. is a Chinese solar panel manufacturer. After the US decided to block importing the company's different products in 2021, Jinko Solar agreed to go public by listing its shares on the Shanghai Stock Exchange. It would also use the raised capital to expand its operations in the photovoltaic industry.

In January 2022, the company issued two billion shares, representing 20% of its outstanding shares, each priced at 5 yuan. The IPO was a big success, and the stock closed at 10.55 yuan per share, representing 111% of the initial IPO price. The company valued the IPO proceedings at 10 billion yuan.

After the offering, the company’s shares were heavily traded, with an average of 1.2 million shares traded per day. The stock currently trades at 14.58 yuan, with a more than 25% increase in value over the past 12 months.

Bausch & Lomb IPO

Bausch & Lomb is a leading Canadian manufacturer of contact lenses, maintenance products, and eye surgery tools. The company was founded in 1853, and until its sale in 2013, experts consider it to be one of the oldest operating companies in the US.

Although the company has been listed on the NYSE since 1958, it was taken off the market in 2007 when it was acquired by the private equity firm Warburg Pincus, becoming a privately held company.

In May 2022, Bausch & Lomb decided to go public by issuing 35 million shares. This was a challenging time for the market, and most companies decided to postpone their IPO plans. However, the company decided to go on with the IPO with a price range between $21 and $24 per share to raise $788 million at a market value of $8.2 billion.

The Canadian contact lens supplier went public mainly to increase its profits. Yet, some experts suggest that this move was to prepare the company for an upcoming division. This decision will divide the company into three parts, and the management believes that it would positively impact the company’s valuation and share prices.

The company started trading its stock at $18 on the New York Stock Exchange and the Toronto Stock Exchange. With the stock priced $3 below the lowest end of the suggested range, the company eventually raised $630 million.

Although the company is well-established in its industry, the market’s volatility had a negative impact on the IPO, despite being a success. This valued the company at $6.3 billion, representing a $2.4 billion decline from what the company was acquired for in 2013. The stock currently trades at $19.20.

Wrap Up

The year 2022 wasn’t a good year for the stock market, and many companies decided to postpone their IPO plans. While some companies chose to go public in 2023, others plan to wait till 2024, hoping for more favorable demand conditions.

Several factors influence the success of an IPO, and other factors govern how the stock will perform once it goes public. In our list, we talked about six companies that chose to take the risk in one of the most volatile market years.

Although some shares are currently trading at a lower price, there’s always room for growth in the future. These low-trading stocks can also represent a good investment opportunity.

The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.