Investing.com — Cathie Wood, founder of ARK Investment Management LLC, has expressed her expectation for a revival in the US initial public offerings (IPO) market, propelled by Donald Trump’s regulatory and growth agenda. Wood shared her views on Bloomberg’s ETF IQ on Wednesday, highlighting the potential benefits of regulatory changes for the public markets.
Wood elaborated on the reasons why companies often prefer to stay private, citing the regulatory complexities associated with the public markets as a significant source of friction. However, she believes that alterations in regulations, as part of Trump’s agenda, could make the public markets more appealing.
The US IPO market has been under close observation by Wall Street, with hopes for a more substantial resurgence in equity debuts. The market experienced a minor rebound in new stock issues in 2024. However, the US IPO volume last year was around $43 billion, a figure considerably lower than the triple-digit boom witnessed during the pandemic.
Wood’s anticipation for a market revival is based on the potential for regulatory changes to reduce the friction associated with public markets, making them a more attractive option for companies.
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