(Bloomberg) -- The market for initial public offerings is slowly coming back and expected to gain traction next year, according to Nasdaq Inc. Chief Executive Officer Adena Friedman.
“We’re seeing good progress and we think that going into 2025 we should see more momentum in terms of the pipeline of companies we have been talking to,” Friedman said in an interview on Bloomberg TV on Thursday.
Nasdaq, the second-largest US stock exchange, has seen investor appetite for initial public offerings increase, following a pullback of deals from a peak in 2021, she said. Friedman’s comments come on the heels of this year’s largest public offering. Lineage Inc., a temperature-controlled storage and logistics company, raised about $4.4 billion Wednesday. It is poised to start trading Thursday on Nasdaq.
US IPO volume has recovered this year from a relatively quiet period, with companies raising more than $28 billion, up 13% from the prior year, according to data compiled by Bloomberg.
The IPO market has been muted because of higher cost of capital, which impacts future earnings projections, said Friedman. If costs come down, “that could be a catalyst for more IPOs going forward,” she said.
Nasdaq reported financial results Thursday, beating analysts’ estimates for the second-quarter. Net revenue jumped 25% to $1.2 billion, thanks in large part to growth in the solutions and financial technology divisions. As CEO, Friedman has steered Nasdaq beyond its roots as an exchange so it can continue to grow despite a dip in the markets-based business.
Shares of Nasdaq jumped as much as 6.3% on Thursday following the company’s financial results, the most on an intraday basis since October.
--With assistance from Sonali Basak and Matthew Miller.
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