"IPO Market Reopens" Wall Street Financial CEOs Also Optimistic

Wall Street financial sector CEOs are consecutively expressing optimism about the reopening of the initial public offering (IPO) market.

Bloomberg reported on the 17th (local time) that, buoyed by successful listings such as Reddit and Galderma, optimism about the reopening of the IPO market is growing among major Wall Street banks. The global IPO volume in the first quarter was recorded at $27.8 billion, an increase of about 10% compared to the same period last year.

David Solomon, CEO of Goldman Sachs, said during this week's earnings announcement, "We have confirmed increased accessibility to the new issuance market in the first few months of this year," adding, "It is clear that we are in the early stages of the capital market reopening." Jane Fraser, CEO of Citigroup, also stated during last week's earnings conference call that "the IPO market will reopen in the second quarter."

The IPO market, which had been frozen solid, is now showing signs of spring as companies like Reddit and Astera Labs posted results far exceeding their offering prices on their first day of trading. Astera Labs, which raised approximately $800 million at its March listing, currently shows a stock price nearly double its offering price. Reddit also surged over 90% before slightly pulling back. In Europe, Galderma, considered one of the largest IPOs, successfully raised $2.6 billion.

Jeremy Barnum, Chief Financial Officer (CFO) of JPMorgan Chase, said, "While some groups and venture companies had underwhelming IPO performances, I believe this has shifted to a meaningful level this quarter," conveying the sentiment that "we are seeing better IPO results."

Ted Pick, CEO of Morgan Stanley, predicted that this IPO market rebound will occur slowly. He diagnosed, "A slow march back is expected," and that investors will not rush abruptly into speculative investments such as SPACs.