Nasdaq Inc. is gearing up for a potentially bustling year in initial public offerings (IPOs) with over 80 companies poised to go public, according to Chief Executive Officer Adena Friedman. In an interview with Bloomberg TV from Davos, Friedman stated, “We have about 85 companies that have filed to go public on Nasdaq, so it means they are ready for the markets to be open.”
Despite a lull in the IPO environment compared to its peak in 2021, Nasdaq has been diversifying its business under Friedman’s leadership. The exchange operator has expanded beyond its traditional role as an exchange to ensure continued growth, shifting resources toward offerings with more predictable revenue streams. This strategy aims to reduce reliance solely on income generated from trading and market volatility.
While markets continue to be a fundamental aspect, Friedman emphasized that Nasdaq’s solutions, including data and analytics, now contribute approximately 75% of the company’s revenue, with markets representing the remaining 25%.
In order for IPO activity to pick up in 2024, Friedman noted that investors need to be prepared to deploy capital. She highlighted that if investors perceive stable interest rates, they are more inclined to underwrite risk as uncertainties become clearer. Friedman expressed optimism about the potential for more IPOs this year, citing increased opportunities in the market.
