Companies are moving forward with plans for initial public offerings despite volatility in the market that’s expected to stick around this year, said New York Stock Exchange President Lynn Martin.
“We have a tremendous amount of companies on the road,” she said in a Bloomberg Television interview Monday. When firms do go public, they will need to demonstrate a path to profitability and show investors they have the ability to thrive even in periods of uncertainty, Martin said. “Companies are going to be disciplined about when they tap the public markets.”
Martin’s comments come at the beginning of a year in which companies including Amer Sports Inc., the maker of Wilson tennis rackets, are slated to go public. Exchange operators including the NYSE have been navigating a muted environment for IPOs, which have declined significantly from a peak in 2021.
There are signs of optimism for stock sales in 2024. NYSE’s largest competitor, Nasdaq Inc., has more than 80 companies ready to go public in what is expected to be a busier year for initial offerings, Chief Executive Officer Adena Friedman said earlier this month.
During times of increased volatility, company founders have been worried about their post-IPO share prices, Martin said Monday. There has been “a recalibration of valuations in the market,” she said, with 2021 being a period of inflated prices. Overall, Martin said, US capital markets remain a key source for liquidity for companies.
“We are really excited about the prospects for 2024,” she said.
This article was provided by Bloomberg News.