Horror Year for ASX This Year, With One Company Suffering The Most

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2022 is considered a Horror Year for stock markets around the globe. The windfalls enjoyed in 2021 have been wiped out, and the companies’ future is still a question mark. One company has seen the worst of the year.

ASX data reveals that significantly fewer companies will be listed on the market in 2022 compared to the previous year. Only 104 new companies were listed compared to 241 in 2021. And on top of it, the companies who listed this year performed rather awfully. This translated to the stock market generating money less than 13 times compared to the previous year.

According to James Posnett, general manager of listings for ASX, “The number of initial public offerings (IPOs) hadn’t been this dire since 2012 when the European debt crisis made the stock market more volatile than usual. Last year, companies listed on the ASX enjoyed combined valuations of $52 billion. However, that number fell to $30 billion this time.”

According to executive producer and host of The Market Herald Deal Room Sonia Madigan, investors in buy now, pay later (BNPL) are seeing the worst losses.

“Investors jumped on the opportunity to take a piece of the BNPL fintech boom, which spanned more than a year after COVID hit in March 2020. Those who took part in the Beforepay Group (B4P) IPO have been struck by the greatest losses of any new ASX listing so far this calendar year,” she added.

Madigan also noted that those who invested in the company BeforePay suffered the most, especially when they bought its stock at $3.41. B4P shares are now, on average, at 48 cents.

What caused BNPL stocks to plummet was the sheer volume of competition in the market. And to add to that, the central banks pushed soaring inflation and interest rates. B4P reports that it has shed almost 90 per cent of its initial IPO price.

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