The market for initial public offerings has taken a severe knock in the last two years and is unlikely to recover the heights of the record year for new listings seen in 2021.
Matthew Langsford, senior portfolio manager and senior wealth advisor at Canaccord Genuity Wealth Management, says IPOs will recover from the lows seen in 2023, which saw just 154 new listings on the New York Stock Exchange, but not on the scale of the record 1,035 seen in 2021.
“I don’t think we’ll ever see the IPO market come back to where it was before because there has been this change in the landscape where there’s so much money available within the private equity space that companies have a lot of other options to consider,” Langsford tells Benzinga.
“We’ll see the IPO markets heat up again to some extent, but I’m not expecting it to be anywhere near what we’ve seen in the past.”
This, he says, is largely a function of the success of the private equity world and the amount of investment available for placement there.
“The need for immediate liquidity is not as prominent,” he says. “So I think a lot of companies and a lot of investors are comfortable investing in a format that allows for true value generation without being ...