Nasdaq CEO says IPO demand boosted despite tariff worries, banks on Texas boom
[NEW YORK] Exchange operator Nasdaq is holding active talks with companies considering stock market debuts, CEO Adena Friedman said on Thursday, underscoring the US economy's resilience despite tariff uncertainty and signaling renewed market vigour.
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.
'The underpinning of the US economy continues to show strength,' said Friedman at the Piper Sandler Global Exchange & Trading Conference. 'That resilience has really helped because we've been managing through a lot of changes in the overall environment.'
Friedman said the IPO pipeline is looking more robust for the second half of the year as more large private companies are starting to brave through the volatility to tap equity capital markets.
'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.
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'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.
'Texas is a really big economy. We have 900 clients in Texas now and that includes about a little over 200 listed clients,' said Friedman. 'More and more companies are moving headquarters or establishing themselves in Texas. So it's a growth area for us.'
Elon Musk-led Tesla and SpaceX, as well as tech giants Oracle and Hewlett Packard Enterprise, have moved to the Lone Star State in recent years, attracted by a favourable 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. REUTERS
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