Morgan Stanley CEO Ted Pick Foresees a Resurgence in IPOs from Large Private Companies

Morgan Stanley CEO, Ted Pick, expressed on Wednesday that he anticipates a rise in initial public offerings (IPOs) from major private companies aiming to expand and enhance their compensation strategies. During a conference call, a transcript of which was provided by AlphaSense, Pick shared his views on the future of the IPO market.

Pick stated that numerous strong companies, currently privately held, are eager to enter the public markets. He predicted that the IPO market would gradually recover, though it might take some time. He also suggested that the companies going public in the near future are likely to be larger, leading to fewer IPOs in terms of unit volume compared to the rapid post-COVID boom of quick listings. However, he emphasized that these companies would be global, mature businesses in need of Morgan Stanley’s advisory services.

His remarks coincided with Morgan Stanley’s release of its latest financial results, which showed a more than 50% year-over-year increase in third-quarter investment banking revenues, with IPOs contributing to that growth.

Despite a relatively cool IPO market this year, with both the number of listings and the dollar amounts down across all three quarters of 2024 compared to the previous two years, Pick’s outlook remains optimistic. An analysis by EY, based on Dealogic data, confirmed this trend.

Pick’s comments align with recent statements from other major banking executives. Goldman Sachs CEO, David Solomon, for instance, noted an uptick in IPO activity, predicting that the momentum would continue.

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