IPO market nearly paused, but exchange leaders expect 2023 boost

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A global slowdown in initial public offerings due to heightened market volatility and a regulatory cloud over new listings from China has created pent up demand that could lead to an IPO boom in 2023, industry executives told the Reuters NEXT conference.

“The reason companies aren’t coming to market isn’t because the public market currency isn’t strong,” she said in an interview on Wednesday. “In fact, our pipeline is tremendous. The reason these aren’t coming to market is because of all the volatility in the market.”

There are about 200 companies currently waiting to go public on the Nasdaq, which is below the range of 250-300 over the past few years, Nasdaq Inc CEO Adena Friedman said on Wednesday. “We are hopeful that the second half of 2023 becomes an opportunity for companies to get out, but I would expect a quiet first half,” she said.

Nasdaq postponed the IPOs of several small Chinese companies in October as it investigated short-lived rallies following the IPOs of such companies, while earlier in the year, five Chinese state-owned enterprises whose audits have been under scrutiny by U.S. regulators delisted from the NYSE.The NYSE’s Martin said a potential deal between U.S. and Chinese authorities over allowing U.S. audits of China-based firms appeared promising.

 

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