Here’s What Brexit Means for the IPO Market
The markets are still reeling from the UK's decision to leave the European Union two weeks ago, but one expert doesn't expect the landmark move to affect the IPO market in the near-term. 'There was obviously a very sharp reaction for the first couple of days,' said Nelson Griggs, Nasdaq's EVP of Listings Services. 'Then it sunk in that this is going to be a multi-year process - it's going to take a long time to play out and we really don't know what the ramifications are. There are certainly concerns about a global slowdown, but for most IPOs that are going to go out in the U.S., it probably will not have a real big impact.' He said the markets have calmed down since Brexit, with the VIX, Wall Street's fear index, trading at roughly 15, compared to 26 during the height of the Brexit fallout on June 24, boding well for upcoming IPOs in the second half of 2016. This is particularly encouraging news given how sluggish the IPO market has been so far this year. The Nasdaq welcomed 35 IPOs in the first six months of 2016, compared to 76 during the first half of 2015. 'We had the most IPOs of any global exchange this year,' Griggs said. 'That said, it was a slower first half of the year than expected.' TheStreet's Scott Gamm reports from the Nasdaq.
