NYSE President Lynn Martin told CNBC’s Jim Cramer on Monday that the companies are eager to go public, but are holding back because of market uncertainty.
“It’s halving. It’s halving is because of all the volatility you see in the market. But you know, the companies I talk to, the companies that are private, the public market currency has never been more alive.” And well,” Martin said in an interview.mad Money,
The number of global IPOs, or initial public offerings, declined 54% year-on-year in the second quarter, EY. according to a report of, The US region saw the biggest drop, with a 73% reduction in deals.
US stocks have seen skyrocketing inflation this year, the Federal Reserve’s interest rate hiked and the Russo-Ukraine war prompting investors to sell holdings. Wall Street is now looking forward to a Fed meeting this week, leading many investors to expect a rate hike of 75 basis points.
Martin said the slowdown in public listings is a sign of the current market environment, not the desire of companies to acquire new shareholders.
“They want to use that public market currency to grow their business, invest in R&D, get new business, move their businesses in a direction they just can’t fathom.” But they are not going to do it in a period when there is tremendous volatility in the market,” he said.
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