IPO surge loses steam amid market volatility

After a record year in 2021, Russell US Index IPO additions are off to a lackluster start in 2022. FTSE Russell adds eligible IPOs to our Russell US Indexes on a quarterly basis, and this quarter we had no IPO additions to the Russell 1000 Index while the Russell 2000 Index IPO additions were a mere fraction of the 1Q2021 number. This can perhaps in part be attributed to companies putting their public offering plans on hold in the face of heightened market volatility.

IPO additions surged in 2021, primarily driven by Health Care and Consumer Discretionary companies—many of them meeting the evolving needs of an economy that’s been reshaped by the pandemic. As shown, 2021 Russell US Index IPO additions totaled 30 for the Russell 1000 Index and 172 for the Russell 2000 Index, with the majority of additions taking place in the third quarter.

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