Nasdaq's (NDAQ) focuses on strategic buyouts and aims to generate revenues from high growth Market Technology and Investment Intelligence segments bodes well.
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. Global IPOs hit record-high levels in 2021, driven by rallying stock markets and rock-bottom interest rates, but the number of companies going public has slowed sharply this year as central banks have rushed to hike rates in an attempt to tame decades-high inflation, roiling markets in the process. Proceeds raised by IPOs this year are down around 93% versus 2021, said Lynn Martin, president of Intercontinental Exchange Inc's New York Stock Exchange.
There are currently about 200 companies in the pipeline for initial public offerings on the Nasdaq, which is below the range of the last few years of 250 to 300, Friedman said during an interview at the Reuters NEXT conference. Last year was a banner year for IPOs at Nasdaq with over 750 new listings, fueled in large part by the boom in special purpose acquisition companies (SPACs), but that activity has slowed to a trickle as high inflation and rising interest rates have soured market sentiment and SPACs have drawn regulatory scrutiny. Nasdaq had 143 IPOs in the first nine months of 2022, versus 557 over the first three quarters of 2021.