Strong Economy, Favorable Interest Rates Fuel Projected Surge in IPOs in 2025
A robust US economy and reduced interest rates are anticipated to drive a surge in initial public offerings (IPOs) in 2025, continuing a recent surge. This optimistic outlook was expressed by Chris Taylor, vice president of listings and services at the New York Stock Exchange, at the Reuters Global Markets Forum.
Changes in leadership at the Securities and Exchange Commission may streamline the public listing process, alleviating the burdens for private companies considering IPOs, Taylor noted.
"Numerous companies are contemplating accessing public markets. Interest rates have stabilized temporarily, and confidence is building in the US," Taylor said, speaking at the World Economic Forum in Davos, Switzerland.
This optimism is evident in corporate boardrooms, where executives are advancing their IPO plans after a period of uncertainty. Anticipated deregulation and corporate tax cuts under the Trump administration have further boosted sentiment.
Notable heavyweights expected to go public in the US in the coming months include Genesys, an AI-driven developer of call center software, and Klarna, a Swedish payments giant.
While the IPO market shows signs of recovery, certain high-profile startups like OpenAI and SpaceX have chosen to remain private, opting for funding from venture capital investors. Critics attribute this reluctance to the onerous paperwork and costs associated with IPOs.
Taylor expressed optimism that the new SEC regime could adopt a more favorable stance. "We believe public markets offer optimal price discovery, capital access, and investment accessibility. We anticipate a positive shift in this regard," he said.