The media reported that Wall Street banks are currently preparing for a rebound related to private equity companies turning to the equities markets to offload some of their high-profile holdings.
Some private equity-backed firms have already filed an initial public offering (IPO) paperwork. In particular, these actions were carried out by medical devices company Medline and software maker Genesys.
According to information released by the media, analysts and bankers expect a lot of IPO announcements to be made in the first half of 2025. In this context, it was separately noted that the relevant tendency will be related to the strong stock market and hopes that the new administration of Donald Trump, who will return to the White House this month after winning the November US presidential election, will decrease taxes and roll back regulations.
It is worth noting that last year’s deals were successful. Value of shares in 9 of the 10 largest IPOs of 2024 ended the year above their listing price.
Eddie Molloy, global co-head of equity capital markets at Morgan Stanley, said during a conversation with media representatives that successful improvement and more activity, are the headlines. It was also noted that large private-equity-backed IPOs will be the most important theme.
It is worth noting that in the weeks following the conclusion of the United States presidential election, many forecasts were published that a more pro-business climate would be formed in the country in 2025. For example, a senior Goldman Sachs banker predicted that the number of IPOs in the technology sector is likely to more than double.
Will Connolly, the banking giant’s head of technology equity capital markets, at Goldman’s Private Innovative Company Conference in Las Vegas, said that there are a large number of big, scaled companies in the technology sector that are IPO candidates, and at the same time there is a demand to put money to work. The importance of the issue of how quickly people can recalibrate to a more active IPO market was also noted.
As we have reported earlier, Kioxia Sets Price Range for IPO.
