It’s no secret that the number of companies choosing to go public has dropped recently, especially since the Great Recession. But now, nearly 10 years after the recession hit, are we finally starting to see an uptick in IPOs? That’s what one notable player in the market thinks. NYSE president Tom Farley recently spoke at length about how appealing the public market still is to entrepreneurs, investors, and others looking to make their mark on a global scale, despite the many obstacles that prevent companies from going public.
Said Lynn Martin on CNBC’s Jim Cramer on Monday
The market instability has companies holding back from going public, according to NYSE President Lynn Martin on CNBC’s Jim Cramer on Monday.
“It’s on hold. It has been paused because of all the volatility you see in the market. But you know, the companies I talk to, those that are private, the public market currency has never been as alive as it is today, Martin said on Mad Money. An EY report found that global IPOs declined 54% in the second quarter compared to the prior quarter. The Americas region saw the biggest drop with a 73% decrease in deals.
The Stock Market Has Seensawed This Year Due to Inflation
Stocks have seesawed this year as skyrocketing inflation, increased interest rates from the Federal Reserve, and the Russia-Ukraine war drove investors to sell holdings. Wall Street now anticipates the Fed’s meeting this week to result in a 75 basis point rate increase.
Martin said the lack of new public listings is an indication of the current market environment, not the companies’ willingness to gain new shareholders.
They want to use that public market currency to grow their business, invest in R&D, acquire new companies, and take their businesses in directions that they can’t even envision right now. But she said they’re not going to do it in a period when there’s high volatility in the market.