The crisis we are experiencing today is unlike any other. With the rapid global spread of the COVID-19 novel coronavirus, we are witnessing a crisis that started in the real markets and is now unleashing its effects on the financial markets. The disaster is unfolding both on the demand side (the almost total blockade of domestic and foreign consumption and investment) and on the supply side (companies are reducing production capacity and with it, labor and capital factors). On top of this, the oil market battle between Russia and Saudi Arabia has led to a collapse in the price of “black gold” causing a further shock on the supply side.

As we began 2020, all signs pointed to a continuation of 2019’s solid IPO activity. Through the third week of February, when U.S. equity markets hit all-time highs, we saw 33 initial public offerings on U.S. exchanges. We were on track for a very strong Q1. Then a string of market losses in response to the growing COVID-19 coronavirus pandemic quickly turned the nearly 11-year-old bull market into a bear market. IPO activity dried up, with just two companies going public between February 24 and March 31.