By Laura Matthews
NEW YORK (Reuters) – The market for U.S. initial public offerings could see high levels of interest from investors next year, said Lynn Martin, president of the New York Stock Exchange on Wednesday at the Reuters NEXT conference in New York.
“We are shaping up for a really active 2025,” she said.
Many investors and companies shied away from going public because of high interest rates and recession fears, sending the market into a two-year slump.
This year, the market has been showing signs of optimism with listings volume increasing but remaining well below peaks seen in 2021.
Martin said there were a lot of green shoots this year because the U.S. economy continued to show its strength.
“Year to date through September, we raised as much capital in the U.S. markets that we had in 2022 and 2023 combined. That’s setting up really well for 2025,” she added.
Optimism about lower rates and easing inflation could encourage new listings across various sectors. There is also hope that IPOs could see a revival with President-elect Donald Trump’s return to the White House as he is expected to soften regulations, which could spur more deals and capital markets activity.
The Nasdaq crossed 20,000 points for the first time on Wednesday, as tech stocks rallied after the latest inflation report bolstered hopes of a Federal Reserve rate cut later this month.
A strong equity market signals investor confidence, which can increase demand for stocks and create a favorable environment for companies looking to go public.
“People haven’t gone out in December because of the returns that have already been generated in the market,” she said, pointing out that some investors are probably focused on locking in the gains they have to end out the year.
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