Lower rates, surging stock market fail to ignite US IPO market [Video]

The beginning of a rate easing cycle by the Federal Reserve was expected to spur IPO activity but analysts see the market response as muted.Photo: CHARLY TRIBALLEAU / AFPSource: AFP

Public listings on Wall Street have seen a slow comeback in 2024 despite a resilient US economy, a long-awaited interest rate cut by the central bank and stock valuations hitting record highs.

Experts say the lackluster IPO activity is due to competition from venture capitalists and a rate cut that was slow to come.

While initial public offerings (IPOs) typically pick up in the fall, the market was “more muted than anticipated” this year, said research group Renaissance Capital.

The IPO market’s “slow rebound” continued in the third quarter this year, the group added, as investors look towards 2025.

Even though IPOs jumped nearly 30 percent from a year ago during the first nine months of 2024, the surge …