NYSE President Says IPO Market Has Opened Up Since Trump Win
U.S. Economy and IPO Market Insights
Focus on U.S. Economic Strength
- Jonathan discusses a recent meeting with the President at the New York Stock Exchange, highlighting his emphasis on the strength of the U.S. economy.
- Lynn notes that the pro-growth agenda will be a central focus for the entire cabinet moving forward.
Activity Levels in IPO Market
- Jonathan observes increased confidence levels, prompting Lynn to confirm rising activity levels in the IPO market.
- Lynn mentions that despite volatility due to election uncertainties last year, many deals are now being planned for upcoming IPOs.
Investor Sentiment and Market Readiness
- Lisa raises concerns about mixed messages from headlines affecting investor sentiment; Lynn agrees that people are waiting for successful deals to validate market conditions.
- Lynn cites a 58% aggregate increase in IPO prices from last year as evidence of an open market, suggesting it's time for companies to go public.
Disconnect Between Private and Public Markets
- Jonathan questions whether there's a growing disconnect regarding companies' desires to remain private despite high valuations; Lynn emphasizes liquidity as a key factor favoring public markets.
- She explains that while private markets support early-stage ideas, they lack consistent liquidity compared to public markets.
Quality of Companies Going Public
- Lynn suggests that companies entering the market now will be higher quality, having developed clear strategies and operational readiness over recent years.
- She contrasts this with past trends where many rushed into public offerings without adequate preparation.
Challenges from Private Markets
- Jonathan asks if developments in private markets challenge their business model; Lynn asserts their role is ensuring companies are ready before going public.
Foreign Entities Listing in U.S. Markets
- Lisa queries about foreign entities looking to list in the U.S.; Lynn confirms there has been valuation appreciation for those transitioning successfully.
Geopolitical Tensions Impacting Listings
- Discussing Chinese companies, Lynn notes fewer listings due to geopolitical tensions but remains hopeful for future clarity on these issues.
Optimism Amidst Uncertainty