Nasdaq Capital Access Platforms Launches Leading Indicator for IPO Activity
January 23 2024 - 8:00AM
Nasdaq (Nasdaq: NDAQ) today announced its Capital Access
Platforms division launched a new leading indicator to provide
corporates and investors with an outlook for the direction of
initial public offering (IPO) activity with a high degree of
predictability six months out. The “Nasdaq IPO Pulse Index”
suggests an upswing in potential IPO activity when it is in an
uptrend – it is now at its highest level since 2021 – compared to a
pullback in IPO activity when the index is trending in the other
direction.
“Companies analyzing an initial public offering are always
looking for key indicators and metrics to help them plan for the
most optimal time to list,” said Karen Snow, Global Head of
Listings at Nasdaq. “We developed the Nasdaq IPO Pulse Index to
empower them with a data-driven forecast of where we believe the
listings market will be in the future. It also provides unique
information for institutional and retail investors to factor into
their decisions about investing in new issuances.”
The Nasdaq IPO Pulse Index is driven by six leading indicators
of IPO market activity including:
- Year-over-year changes in the Fed Funds Rate
- Year-over-year changes in the VIX Index
- Recent returns (S&P 500 Price Annual Growth)
- Valuations (S&P 500 Enterprise Value to Sales Ratio Annual
Growth)
- Investor sentiment
- Nasdaq’s proprietary IPO data
More than 50 candidate series were rigorously backtested over
the last three decades to arrive at these six indicators, which we
believe have proved to consistently lead directional shifts in IPO
activity. Combined, the Nasdaq IPO Pulse Index anticipates turns in
IPO activity by about six months on average.
Caption: With the Nasdaq IPO Pulse Index at a two-year high,
it’s likely IPO activity will remain in an uptrend at least through
the first half of the year.
“The Nasdaq IPO Pulse Index is updated each quarter and is now
at a current two-year high, which historically means IPO activity
should remain in an uptrend through the first half of this year,”
said Phil Mackintosh, Chief Economist at Nasdaq. “We carefully
curated the index methodology that blends industry and proprietary
Nasdaq data to provide corporates and investors with a pulse of how
receptive the markets may be to new issuances in the
near-term.”
To learn more about the Nasdaq IPO Pulse Index, please visit our
website or click here to read a detailed whitepaper about the
innovative indicator for IPO activity.
About Nasdaq: Nasdaq (Nasdaq: NDAQ) is a
leading global technology company serving corporate clients,
investment managers, banks, brokers, and exchange operators as they
navigate and interact with the global capital markets and the
broader financial system. We aspire to deliver world-leading
platforms that improve the liquidity, transparency, and integrity
of the global economy. Our diverse offering of data, analytics,
software, exchange capabilities, and client-centric services
enables clients to optimize and execute their business vision with
confidence. To learn more about the company, technology solutions,
and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at
www.nasdaq.com.
Nasdaq Media Contact
Peter Gau(201) 388-9682Peter.gau@nasdaq.com |
Sophia Weiss(646) 483-6960Sophia.weiss@nasdaq.com |
The IPO Pulse indicator is provided for educational purposes
only and should not be construed as investment advice. Nasdaq does
not recommend or endorse any securities offering or investment
strategy. Before making any investments you are urged to read the
relevant company’s SEC filings, undertake your own due diligence,
and carefully evaluate the company. Advice from a securities
professional is strongly advised.
-NDAQG-
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/6ae3015e-6f09-40e2-ab21-b8108e3a5dfc
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