Lizzie Reed, Global head of equity syndicate desk in Global Banking & Markets, discusses the strong start of IPOs in 2024, driven by investor participation and improved sentiment. The podcast explores global IPO trends, central bank policies' influence on market conditions, and opportunities for investors in Q2 to capitalize on upcoming opportunities.
2024 shows record IPO activity globally, reflecting enhanced investor sentiment and broader participation.
Stable central bank policies and accommodative measures are driving robust deal-making activities and creating a favorable climate for growth-oriented assets.
Deep dives
Robust IPO Activity in 2024
Despite excluding the record-setting year of 2021, 2024 has shown a remarkable increase in IPO activity globally, surpassing the pace set since 2018. The US market also reflects this trend, with the strongest start seen since 2015. This surge is attributed to an enhanced investor sentiment, marked by broader participation from various investor types like mutual funds, sovereign wealth funds, and retail investors. The willingness to invest in higher valuations indicates a shift towards a more optimistic market outlook.
Market Dynamics and Deal-Making Outlook
The current macroeconomic environment, characterized by stable central bank policies and accommodative measures, is driving robust deal-making activities. The Fed's dovish posture and record market closures across indices have created a favorable climate for deal-making. Equities at all-time highs and strong credit market performance indicate a supportive backdrop for growth-oriented assets like IPOs. The market anticipates increased access to liquidity and attractive valuations, particularly in tech and consumer-oriented sectors.
Initial public offerings are off to a surprisingly strong start this year. Lizzie Reed, global head of the equity syndicate desk in Global Banking & Markets, discusses the trajectory of the IPO market for 2024 and investor sentiment in today's markets.