Nasdaq CEO says IPO demand boosted despite tariff worries, banks on Texas boom

Reuters
06-06
Nasdaq CEO says IPO demand boosted despite tariff worries, banks on Texas boom

By Manya Saini

June 5 (Reuters) - Exchange operator Nasdaq NDAQ.O is holding active talks with companies considering stock market debuts, CEO Adena Friedman said on Thursday, underscoring the U.S. economy's resilience and signaling renewed market vigor.

Several high-profile companies, including those in risk-heavy sectors such as crypto and financial technology, have successfully launched listings in recent weeks, pointing to pent-up demand and improving market conditions.

At the Piper Sandler Global Exchange & Trading Conference, Friedman said the foundation of the U.S. economy remained strong and its resilience continued to support market activity.

"People are continuing to put capital to work. Companies are putting capital to work. They're investing and the capital markets have gone through a lot of volatility, but that's also starting to kind of moderate," Friedman said, adding that there was more opportunity for the IPO window to really open up now.

Still, some firms exposed to trade policy uncertainty were adopting a cautious approach and holding off until there is greater clarity.

"Sectors that are more impacted by the potential tariff environment, it's going to be harder for investors to predict the future of those companies... I think those companies are taking a little bit more of a wait-and-see approach," Friedman said.

Listings on the Nasdaq and rival Intercontinental Exchange have been closely watched as a barometer for renewed risk appetite and investor sentiment following a years-long slowdown in new listings.

NYSE President Lynn Martin also said earlier on Thursday that public markets were ready for well-prepared companies even amid tariff concerns.

ALL EYES ON TEXAS

Friedman highlighted Texas as an emerging capital markets hub, praising the state's pro-business environment and growth potential.

"It's a growth area for us," she said, adding that the state has a pro-business environment and companies are increasingly moving their headquarters to or establishing themselves in Texas.

Elon Musk-led Tesla TSLA.O and SpaceX, as well as tech giants Oracle ORCL.N and Hewlett Packard Enterprise HPE.N, have moved to the Lone Star State in recent years, attracted by a favorable tax climate, lower living costs and reduced energy costs.

In March, Nasdaq had said it would open a regional headquarters in Texas, deepening its presence in a state that is fast emerging as a major financial hub rivaling New York.

A foothold in Texas could enhance the exchange's reach among the state's leading industries, including energy and manufacturing.

(Reporting by Manya Saini in Bengaluru; Editing by Pooja Desai)

((Manya.Saini@thomsonreuters.com; X: manya__saini;))

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