Although IPOs in the U.S. fell by more than a third in 2016, compared to 2015, the IPO scene is set to get a boost now that the uncertainty of the presidential elections is over.
Fueled by a stronger economic outlook, the IPO scene in the U.S. is expected to be much sunnier in 2017. No wonder the Federal Reserve was encouraged by it and hiked interest rates.
The Feds have raised interest rates by 25 basis points, its second hike since the 2008 financial crisis.
In what could be more promising signs, the Feds have also signalled that the pace of interest rate hikes will be much faster in 2017. The Trump administration is expected to boost growth through tax cuts, deregulations and cut boost spending.
As per executives from both New York Stock Exchange and Nasdaq, public listing of companies are set to increase in 2017 as private equity firms are looking to exit their investments.
Waiting in line to be listed are star studded companies, including Snap Inc, parent of Snapchat, and Uber Technologies Inc. Both companies have been valued at tens of billions of dollars.
“We are going to see more companies go public now that we are through with the elections,” said John Tuttle, global head of listings at NYSE.
He went on to add, “We have a clear picture of what the next four years will look like from a regulatory and policy standpoint. And companies like certainty.”
As per Joseph Brantuk, vice president and head of new listings and IPOs for Nasdaq, technology, healthcare and the financial sector could be the most active in the coming year.
“We have never been busier.”
Categories: Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy
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