U.S. IPO Market Forecast

By Laura Matthews
NEW YORK (Reuters) – The market for U.S. initial public offerings (IPOs) could see high interest from investors next year, according to Lynn Martin, president of the New York Stock Exchange, who spoke at the Reuters NEXT conference in New York on Wednesday.

> "We are shaping up for a really active 2025," she noted.

Many investors and companies have been hesitant to go public due to high interest rates and recession fears, leading to a two-year market slump. However, this year has shown signs of optimism with an increase in listing volumes, albeit still below the peaks of 2021.

Martin highlighted several positive trends this year, emphasizing that the U.S. economy continues to demonstrate resilience.

> "Year to date through September, we raised as much capital in the U.S. markets as we had in 2022 and 2023 combined. That's setting up really well for 2025," she said.

Optimism regarding lower rates and easing inflation could motivate new listings across various sectors. Additionally, there is hope for a revival of IPOs with President-elect Donald Trump's anticipated return to the White House, which could lead to softened regulations and increased capital markets activity.

On the same note, the Nasdaq reached a milestone by crossing 20,000 points for the first time on Wednesday, as tech stocks rallied after a latest inflation report raised hopes for a Federal Reserve rate cut later this month.

A robust equity market indicates investor confidence, which generally enhances stock demand and creates a conducive environment for companies aiming to go public.

> "People haven't gone out in December because of the returns that have already been generated in the market," Martin stated, suggesting that some investors are likely focusing on securing their year-end gains.

For more information, visit the live broadcast of the World Stage at Reuters NEXT news page.