Nov. 30 (Reuters) – Nasdaq Chief Executive Officer Adena Friedman (NDAQ.O)she said on Wednesday that she expects initial public offerings to be quiet in the first half of 2023 as investors remain cautious, but expects activity to pick up in the second half of this year. Stated.
Friedman said there are now about 200 companies planning initial public offerings on the Nasdaq, down from the range of 250 to 300 in past years. Reuters NEXT Conference.
Last year was a great year for IPOs on the Nasdaq. Over 750 new listingslargely spurred by a boom in special purpose acquisition companies (SPACs), but that activity has dwindled as high inflation and rising interest rates have soured market sentiment and SPACs have come under regulatory scrutiny. It’s slowing down.
Nasdaq has made 143 IPOs. First 9 months of 2022versus 557 in the first three quarters of 2021.
Friedman also said he is excited about Nasdaq’s crypto custody business. Nasdaq Digital Assetswas announced in September and will be available in the first half of 2023, pending regulatory approval.
Nasdaq has been involved in the cryptocurrency space for several years, providing trading and monitoring technology to digital asset exchanges, and Friedman said he wanted to focus more on this space to attract the attention of institutional investors. He said it should be strictly regulated.
“Now is the time for regulation to catch up, and as we move forward, it must not only ensure safety and health, but also enable innovation and an agile ecosystem.”
Cryptocurrencies are under pressure this year after a series of high-profile bankruptcies at crypto lenders and exchanges. Collapsed FTX After traders withdrew $6 billion from the platform in three days and rival exchange Binance abandoned bailout trading.
An estimated 1 million creditors face losses totaling billions of dollars due to the failure of FTX.
Nasdaq is also making a big push for financial crime-fighting software with its $2.75 billion acquisition of Verafin announced in December 2020.
Friedman said he believes the burgeoning Nasdaq anti-financial crime unit could become a $1 billion a year business, three times its current revenue.
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Reporting by John Sinclair Foley and John McCrank, New York; Reporting by Manya Saini, Bengaluru Editing by Matthew Lewis and Chris Reese
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