By Pritam Biswas
Oct 22 (Reuters) - Nasdaq chief executive said on Thursday that initial public offerings market has softened modestly after a wave of macroeconomic turbulence forced several high-profile companies to slam the brakes on their public debuts.
Speaking at the exchange operator's third-quarter earnings call, CEO Adena Friedman noted that while the long-term pipeline remains deeply robust, executives across specific sectors are suddenly "re-evaluating the timing of their IPOs."
Escalating
conflicts in the Middle East have triggered a wartime energy shock, reigniting global inflation fears, which led the US Federal Reserve to hike interest rates in response.
With the 30-year Treasury yield sitting at near two-decade highs, the surging cost of capital has dramatically altered the risk appetite of prospective issuers. This shift has effectively chilled the IPO window over the past two months.
In September, wearable health technology firm Oura postponed its planned Nasdaq debut, citing volatile market conditions, while nuclear equipment maker Holtec Nuclear withdrew its planned US IPO due to adverse sentiment impacting the equity markets and the nuclear sector.
A host of other companies also delayed their offerings around the same time.
Total new listings at Nasdaq fell to 167 in the third quarter, down from 205 last year. However, CEO Friedman said that the exchange's "listings pipeline remains robust" and that it is well positioned to support the diverse group of companies preparing to enter the public markets.
"Unless AI enthusiasm comes roaring back, we're not expecting a big rebound to close out 2026. Plenty of companies are preparing IPOs to give themselves that optionality, but more and more are penciling in 2027. At this point, the 2026 IPO market revolves around Anthropic and the biotech sector," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
The exchange operator beat estimates for quarterly earnings on Thursday. Its shares were up 6.7% in morning trading.
(Reporting by Pritam Biswas in Bengaluru; Editing by Shinjini Ganguli)
