Nasdaq’s Bob McCooey: The Outlook for 2025 IPOs and the Impact of Global Trends

The global IPO market faced a challenging year in 2024, experiencing fluctuations from a strong start to mid-year market volatility, followed by uncertainty surrounding the U.S. presidential election. Amidst these complexities, investor sentiment became more cautious, impacting overall IPO activity. However, despite the turbulence, several noteworthy companies successfully went public, particularly in emerging sectors such as electric vehicles (EVs), autonomous driving, artificial intelligence, and biotechnology.

From a data perspective, Nasdaq led the U.S. IPO market for the sixth consecutive year, hosting 171 IPOs and raising a total of $22.7 billion in 2024. This included the largest IPO of the year—Lineage, as well as numerous listings from the healthcare, technology, and biotech sectors. Additionally, 23 companies transferred their listings to Nasdaq, including Palantir, with a market capitalization of $180 billion. At the same time, the SPAC market remained a focal point, with Nasdaq handling 87% of all SPAC IPOs. However, concerns about the long-term sustainability of the SPAC model persist.

To gain deeper insights into the 2024 IPO market performance and expectations for 2025, Southern Finance interviewed Bob McCooey, Senior Vice President of Nasdaq’s Global Listing Services. With 19 years of experience at Nasdaq, McCooey has closely observed both the Chinese and global financial markets, witnessing the evolution of numerous IPOs.

In this interview, Bob McCooey analyzes the challenges and opportunities that shaped the IPO landscape in 2024. He also discusses the potential impact of macroeconomic factors such as inflation, interest rates, and Trump’s second-term economic policies on the IPO market. Looking ahead to 2025, he remains optimistic, stating "Tomorrow's market will always be better than today's." Nasdaq continues its efforts to support global capital markets and attract more innovative companies. Below is the full interview—

Southern Finance: The first question—if you had to summarize the IPO activity in 2024 using just one word, what would it be?

Bob McCooey: Challenging. The market started off strong, with Astera Labs going public early in the year. Technology showed signs of revival, and we had some solid healthcare IPOs in the spring. However, volatility in August set things back, and, of course, we had the presidential election. Investors were cautious about its potential market impact, which held back further IPO activity. But we still saw some notable Chinese IPOs in 2024.

Southern Finance: Can you give us some examples and elaborate on the Chinese IPOs?

Bob McCooey: Sure. The year really kicked off with WeRide, an autonomous driving company that went public with us. Then we had FLX—BingEx is their corporate name—followed later in the year by Pony AI. These companies highlight key market trends: FlX focuses on parking technology, while WeRide and Pony AI are both leaders in autonomous driving. The market's emphasis on EVs, battery technology, and autonomy is clear, and China has been at the forefront of these sectors. Seeing these companies go public successfully presents great opportunities for investors interested in this space.

Southern Finance: I’ve read Nasdaq’s IPO report, which highlights its continued dominance in healthcare, technology, artificial intelligence, and biotech. What advantages does Nasdaq offer to companies in these industries?

Bob McCooey: Nasdaq provides significant benefits to all companies, but you’re right—our strongest sectors are healthcare, technology, AI, and biotech. While healthcare has the largest number of listed companies, technology represents the biggest market capitalization, with the world’s seven largest tech companies trading on Nasdaq.

Our brand is synonymous with growth, innovation, and entrepreneurship. Companies that list with us benefit from deep liquidity, superior trading execution, and unparalleled branding opportunities—such as exposure on the Nasdaq Tower in Times Square, where 400,000 people pass by daily. Additionally, Nasdaq offers a comprehensive suite of services tailored to listed companies, from corporate governance to investor relations. And we provide all these advantages at a lower cost than our competitors, making us the most value-driven exchange in the U.S.

Southern Finance: What are your expectations for the IPO market in 2025?

Bob McCooey: I’m an eternal optimist—I always believe tomorrow’s market will be stronger than today’s. We have a substantial backlog of companies that have already filed and are moving toward IPOs. Over the past six months, we’ve seen a notable uptick in company meetings, signaling strong interest in going public. If the first half of the year performs well, the second half should be even better. So far, my expectations for 2025 remain high.

Southern Finance: You mentioned that you traveled to China multiple times in 2024. Can you share some highlights from your trips?

Bob McCooey: Yes, I made several trips to China, but my travels across Asia have expanded beyond China. In my 19 years at Nasdaq, my early years were almost entirely focused on China’s IPO activity. However, over time, we saw companies from Southeast Asia—Singapore, Malaysia, Indonesia, Vietnam—enter the market. More recently, we’ve seen increased activity from North Asia, including South Korea and Japan.

For example, we had the Webtoon IPO last summer and several Japanese companies join Nasdaq over the past year. While China remains our largest market, with over 250 Chinese companies listed, Nasdaq continues to attract innovative companies from across the broader Asian region.

Southern Finance: How do macroeconomic factors—such as inflation, interest rates, and Trump’s potential economic policies in 2025—impact the IPO market?

Bob McCooey: As long as the broader market remains strong, the IPO market will be healthy. One key indicator is the VIX (the Volatility Index). Most companies go public when the VIX is below 25, and a significant number prefer it below 20. When it spiked to 40 or 50 a few months ago, IPO activity came to a halt.

Now, with volatility stabilizing and interest rates likely to trend downward, we’re seeing more optimism. The Federal Reserve’s decision to hold rates steady suggests a potential path for future cuts, which would stimulate the economy. President Trump is expected to focus heavily on economic growth and maintaining America’s leadership in innovation, particularly in AI, technology, and healthcare. These factors could create a favorable environment for IPOs.

Southern Finance: Given the growing opportunities in global markets, what unique advantages does Nasdaq offer to Chinese companies?

Bob McCooey: Nasdaq provides unparalleled services and benefits, but we also recognize that most companies naturally belong in their local markets. When I travel to cities like Zhengzhou, Shenyang, Nanjing, or Suzhou, I don’t persuade companies to list outside of China. However, each year, a select few companies proactively choose to go public outside their home markets, and for them, Nasdaq offers significant advantages.

In industries like healthcare, technology, AI, and EV batteries—where Nasdaq has long been a leader—Chinese companies see strategic benefits in listing with us. Nasdaq’s brand aligns with innovation, and entrepreneurs often aspire to be part of the Nasdaq family. They value the deep liquidity, global investor base, and sector expertise that Nasdaq provides.

Southern Finance: Finally, is there anything else you’d like to share with our Chinese audience about Nasdaq’s vision for the future?

Bob McCooey: Nasdaq will continue to grow both as a market and as a company. When I joined Nasdaq nearly 19 years ago, our total market capitalization was about $4.5 billion. Yesterday, we reported $4.7 billion in revenue alone, and our market cap now stands at $45 billion.

This growth wasn’t driven solely by listings and trading—we’ve diversified our services across banks, brokers, corporates, and global financial institutions. Nasdaq aims to be the trusted fabric of global financial markets, providing leading solutions in trading, regulatory technology, data analytics, and risk management. Our acquisition of Adenza strengthened our capabilities in treasury and risk management, further broadening our market leadership.

Of course, we remain the leader in listings, holding that position for nearly a decade in the U.S. Our industry-leading services and robust trading infrastructure continue to attract the world’s most innovative companies. We’re committed to telling Nasdaq’s story to great entrepreneurs worldwide, and we’ll continue doing so in 2025 and beyond.