Barclays' Kristin Peterson on the retail appetite for tech IPOs

Summary

Barclays technology investment banking head Kristin Peterson says the tech IPO demand backdrop is favorable because global equity AUM, trading volumes, and money on the sidelines have grown since 2021. She expects a wave of AI-native companies across LLMs, data centers, compute, and infrastructure to come to public markets, offering investors more ways to play AI. She also notes upcoming IPO candidates will be evaluated on near-term milestones and catalysts.

• 2021 tech IPOs raised $600 billion, while this year has $230 billion with four months left.
• Global equity AUM is up 40% and average daily trading volumes are up 140% since 2021.
• More money on the sidelines supports IPO supply/demand even with multiple $100 billion-plus deals.
• A wave of AI-native IPOs is expected across LLMs, data centers, compute, and infrastructure.
• Public markets are creating more ways for investors to gain AI exposure.
• Investors will assess upcoming IPOs using both long-term TAM and near-term milestones.