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UBS Investment Bank global co-head of equity capital markets Tommy Rueger joins Market Domination to discuss his 2025 initial public offering (IPO) market outlook.
Rueger notes increased optimism among business executives regarding merger and acquisition (M&A) activity and capital markets (^DJI, ^IXIC, ^GSPC) since Trump took office, calling these "all positive signs" for the IPO market. However, he cautions that the current interest rate environment poses challenges for smaller-cap companies seeking to go public.
"You're going to see larger companies, primarily out of financial sponsors, scaled assets, profitable businesses that don't necessarily need to go public but financial sponsors need to start the liquidity process and returning capital to LPs. Those are going to be some of the first deals to market," he explains.
Regarding the sectors he expects to lead IPO activity in 2025, Rueger says it's "broad," pointing to technology, healthcare, consumer, financials, and industrials.
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This post was written by Angel Smith