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Unhedged

Will IPOs ever come back?

Dec 17, 2024
Craig Coben, former global head of equity capital markets at Bank of America and now a contributor to FT Alphaville, dives into the current state of IPOs and the rising influence of private equity. He discusses why companies are staying private longer and the challenges they face prepping for an IPO. The conversation touches on the regulatory impacts on public markets and contrasts the recovering US IPO landscape with struggles in Europe and Asia. Coben also shares insights on the societal importance of robust public markets.
22:27

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Podcast summary created with Snipd AI

Quick takeaways

  • The anticipated rise in IPOs for 2024 reflects optimism from companies and private equity backers eager to capitalize on favorable market conditions.
  • The trend of companies remaining private longer alters public market dynamics, as high-performing firms choose not to list, impacting investor enthusiasm.

Deep dives

The Surge of IPO Activity in 2024

There is a predicted surge in initial public offerings (IPOs) in 2024 as many companies and their private equity backers are eager to enter the stock market. With many analysts suggesting that the market appears robust, firms are preparing their offerings and strategizing to capitalize on favorable conditions. The preparation for an IPO is extensive, often requiring nine months or longer, as companies must reshape their internal systems and present compelling marketing materials to attract investors. Despite recent sluggishness in the IPO market, the anticipation for a rebound reflects a mixture of optimism and caution among financial industry players.

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