At least 100 companies worldwide have postponed or pulled financing deals totaling more than $45 billion by Bloomberg’s count in the wake of Russia’s attack on Ukraine, which has rattled markets and dented investor appetite amid increased volatility and uncertainty.
That includes initial public offerings, bonds or loans and mergers and acquisitions.
Since late February, around the time Russia invaded Ukraine, around 50 companies have halted plans to go public, 30 of which were planning to list in the United States, including biotechnology company Bioxytran, media and financial services company Crown Equity Holdings and pharmaceutical company Sagimet Biosciences, Bloomberg reported.
According to consultancy EY, around 320 IPO deals worldwide raised a total of around $54 billion between January and March, down 51% compared to the same period last year.
In the M&A market, around 10 deals worth more than $5 billion have been held back since the Russian aggression, and as a result, the global M&A plunged 15% to $1.02 trillion between January and March compared to a year ago, Bloomberg reported, with Europe the most affected.
Bond issuance has declined 14% worldwide year to date, Bloomberg reported.
Geopolitical uncertainty caused by Russia’s invasion of Ukraine and rising in interest rates worldwide to contain worsening inflation have spooked investors, drawing a contrast to 2021 when IPOs raised a record $594 billion. The Cboe Volatility Index, viewed as a gauge of fear in the markets, rose above 30 when Russia invaded Ukraine and has averaged above 26 this year. Financial institutions, including Goldman Sachs and JPMorgan, have distanced themselves from the Russian market since the war.
A Hundred Firms Pull $45 Billion of Deals Since War in Ukraine (Bloomberg)
IPO Market Plunges 70% as Higher Rates, War Curb Risk Appetite (Bloomberg)
Companies Scrap IPOs Amid Russian Invasion of Ukraine (Wall Street Journal)