Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

NYSE president says IPO proceeds fall more than 90%

Economy Nov 30, 2022 03:17PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. NYSE (The New York Stock Exchange) President Lynn Martin speaks during a Reuters NEXT Newsmaker event in New York City, U.S., November 30, 2022. REUTERS/Brendan McDermid
 
ICE
-0.62%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IBM
+0.40%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By John McCrank, Saeed Azhar and Lananh Nguyen

NEW YORK (Reuters) -Volatility and market uncertainty have taken a big hit on the number of companies going public, driving down initial public offering proceeds by 93% this year, Lynn Martin, president of the New York Stock Exchange said on Wednesday.

"There is a lot of uncertainty and there's a lot of different forces that are impacting markets," said Martin during an interview at the Reuters NEXT conference.

The NYSE, which is owned by the Intercontinental Exchange (NYSE:ICE) Inc, is the world's biggest exchange, with more than 2,400 listed companies, as well as being home to over 3,000 exchange traded funds (ETFs).

Last year was a record for IPOs at the NYSE, fueled in large part by the boom in special purpose acquisition companies (SPACs), but that activity has slowed to a trickle as high inflation and rising interest rates have soured market sentiment and SPACs have drawn regulatory scrutiny.

PIPELINE

"Our pipeline is tremendous -- the reason companies aren't coming to market is because all the volatility in the market," said Martin, who worked for IBM (NYSE:IBM) as a computer coder before joining the NYSE in 2001.

"They don't know what they are entering into, either on their IPO day, or, importantly, the weeks and months that follow," she said.

Martin said companies "very much want to go public," but they are just all waiting for the volatility in the market to calm down.

Unlike the volatile IPO market, the Exchange Trade Funds' issuance may witness another record this year, she said

"We've already done about 250 ETFs this year that have come to market, and we have a tremendous pipeline for December," Martin said.

NYSE parent ICE earlier in November reported third-quarter profit that topped estimates. Even as the global market rout forcing companies to delay their stock market listings, it led to a surge in trading volumes across asset classes as investors rejig portfolios to hedge against risk.

Martin on Wednesday also spoke about the collapse of crypto exchange FTX, pointing out FTX lacked a central counterparty for clearing its trades, which is why their bankruptcy is "a bit murky."

"The FTX situation may have added a layer of complexity to to the crypto markets in general," Martin said.

Cryptocurrencies have been under pressure this year after a string of high profile bankruptcies at crypto lenders and exchanges.

The biggest case was FTX, which collapsed after traders pulled $6 billion from the platform in three days and rival exchange Binance abandoned a rescue deal.

The implosion has left an estimated 1 million creditors facing losses totaling billions of dollars.

Martin said she was encouraged by talks between the U.S. and Chinese regulators to find "a path forward" to resolve the row over the U.S. inspection of audits of U.S.-listed Chinese companies.

Washington and Beijing reached an agreement in August allowing U.S. auditors to inspect China-based accountants, the first step in a process that could prevent around 200 Chinese companies being kicked off American stock exchanges.

Martin said the exchange has continued to talk to Chinese companies hoping to list in New York, but added "a good chunk" of those companies could not qualify for a NYSE listing.

"Those who qualify continue to engage with us," she said.

To view the Reuters NEXT conference live on Nov. 30 and Dec. 1, please click [https://www.reuters.com/world/reuters-next/] 

 

NYSE president says IPO proceeds fall more than 90%
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email