Stock Market

Recovery of the IPO market can be expected in the coming months – the head of Goldman Sachs

Goldman Sachs Group (NYSE:GS) CEO David Solomon expects the IPO market to recover in the coming months.

“I think we’re going through a period of price repricing right now,” he told CNBC host Jim Cramer. “We’re going to see a slight recovery in capital markets over the coming months as investors adjust to this repricing.”

The US IPO market has practically come to a standstill this year due to high inflation, Fed rate hikes and geopolitical events. In the first half of the year, IPO volume on US exchanges was only $4.8 billion, compared to $155 billion in 2021, according to EY and Dealogic.

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The negative factors have not gone away, but investors are gradually getting used to the new reality, Solomon noted.

“There are always a number of companies that need to go public,” he said. “History will tell when that adjustment takes place.”

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