Institutional investors are adjusting their growth projections for companies seeking to IPO, according to Michael Harris, Global Head of Capital Markets at NYSE.
Addressing delegates on the opening day of Money 20/20 Europe in Amsterdam, Harris said that both US and international companies are still exploring the potential that exists in going public, in spite of ongoing macroeconomic uncertainties.
“We are seeing a shift in how investors are thinking about growth projects in the US, but also in Europe. When you look at companies looking to scale globally, the US market still remains a very attractive place to do so.”
His comments come three months after a Bloomberg TV interview where he explained that while market volatility remains a challenge, the IPO pipeline is still strong.
In Amsterdam, Harris explained that companies seeking to IPO have continued to be attracted to the US due to its perceived potential for higher multiples and the market’s deep pool of investors.
“We don’t see that changing any time soon,” he said, noting that US investors were now looking at organisations’ valuations in a more complex way that in years gone by, and giving consideration to partnership deals that such companies may have in place.
“It is all about fit. If you are partnering to try and scale, it can make a lot of sense,” he said.
When asked how traditional finance was responding to the innovation challenge posed by fast-growing fintech organisations scaling at speed, Harris underscored that traditional financial services organisations have been investing to defend their market positions.
“You are definitely seeing the banks trying to respond,” he said. “They are investing billions in IT spend and a lot of that response is trying to address legacy systems.”
The NYSE boss was on stage with Lisa Demery, Head of Commercial Solutions at Visa Europe and Philip Belamant, Co-Founder and Chief Executive Officer of Zilch.
