Goldman CEO "IPO Market Has Opened"

David Solomon, CEO of Goldman Sachs, has stated that the initial public offering (IPO) market has opened. However, he assessed that there will not be a frenzy like in 2021.

[Image source=AFP Yonhap News]

Attending the Chuze France event held in Versailles, France, Solomon said in an interview with Bloomberg TV on the 13th (local time), after a brief silence in response to a question about the IPO market, that it has "opened."

Solomon predicted that IPO activity will show a recovery trend through the second half of the year. However, he evaluated that it will not be as robust as in 2021. Recently, Goldman Sachs' stock price reached an all-time high due to expectations of a rebound in trading and an increase in first-quarter net profit.

He pointed out as a concern that "fewer and fewer" companies are going public. He added, "There is clearly abundant capital available in the private market," but emphasized, "It is important to have an open, receptive, and strong public market."

He also noted that the mergers and acquisitions (M&A) market has rebounded and predicted that transactions will normalize by the end of the year.

Regarding the current economic situation, Solomon gave a positive assessment, saying it is "chugging along pretty well." Earlier this year, he had expressed concerns that inflation might become entrenched more than initially expected. Bloomberg highlighted that these remarks came amid growing concerns among CEOs of major U.S. financial firms about a slowdown in consumption, especially among low-income groups. Solomon also mentioned the need for discussions not only about consumption but also about the high debt problem in the U.S.

He also emphasized that Goldman Sachs can achieve additional growth. While stating that "acquisition standards are high," he confirmed that Goldman Sachs is considering large-scale M&A. The report noted that even when Goldman Sachs' stock price fluctuated last year, Solomon did not lose confidence. On this day as well, Solomon expressed confidence, saying, "I have always had a good feeling about Goldman Sachs."

Additionally, Solomon confirmed the return of Robert Kaplan, former president of the Dallas Federal Reserve Bank. Kaplan had previously stepped down after it was revealed that he traded stocks during the pandemic period.