It’s been a horror year for stock markets as the windfalls enjoyed in 2021 were wiped out, leaving companies floundering.
The Australian reports ASX data revealed that significantly fewer companies listed on the market compared to previous years.
Of those that did list, they mostly performed abysmally and on average, the stock market generated 13 times less money than the year before.
Only 104 new companies listed on the ASX in an initial public offering.
In 2021, more than double that number of companies, a whopping 241, debuted on the market.
The ASX’s general manager for listings, James Posnett, said the number of initial public offerings (IPOs) hadn’t been this dire since 2012, which was when the European debt crisis made the stock market more volatile than usual.
Last year companies that listed on the ASX enjoyed combined valuations of $52 billion. This time around, however, that number fell to $30 billion.
The capital raised through the ASX also plunged. A year ago, it was $13 billion. This year, it was just $1 billion.
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Some newly listed companies have had an embarrassing 12 months.
Beforepay, a fintech that allows users to dip into their pay check before their monthly payout, has plunged by 86 per cent since its starting price.
The fintech launched on the ASX in January this year.
A share was sold for $3.41 at first.
But as the cost-of-living crisis and the tech meltdown set in, that amount plunged drastically.
At time of writing, Beforepay was selling for just 48 cents per share.
The stock plummeted after its launch despite raising $35 million when it first hit the market.
Another tech venture, HALO Technologies, saw its value tank 85 per cent.
While its IPO price was $1.20, it was worth just 18c at time of writing, according to the ASX.
The ASX has largely mirrored the US stock exchange, which has had a similarly tough year. Tech bosses have been massacred on the stocks.
Elon Musk, for instance, has currently lost his title as the world’s richest person as share prices tanked across Tesla and SpaceX.