WHEN WILL THE IPO OUTLOOK TURN POSITIVE?

The discussion centers around the IPO market, highlighting its recent decline and potential rebound. In 2021, IPOs peaked at $650 billion, an anomaly compared to previous years. The U.S. IPO market has seen a rebound, with $30 billion in issuance, though technology and biotech sectors have decreased to 40% of IPOs. Regulatory challenges and the cost of going public are significant hurdles for companies. Smaller companies face difficulties due to stringent regulations and financial reporting requirements. Despite these challenges, Asia, particularly Hong Kong, continues to see growth in listed companies. The discussion also touches on alternative ways companies access markets, such as spins, splits, and IPO carve-outs. Investors are cautious due to past poor performance of IPOs, focusing on companies with strong cash flow and sustainable growth.