David Livingstone, CRO at Citi, discussed the current state of the US IPO market and competition from European markets. He pointed out that the IPO pipeline is strengthening and remains robust, while noting that current conditions, including the outlook for interest rates and their volatility, are key factors for investors and issuers. Livingstone has seen particularly strong activity in the US in recent weeks, particularly in the healthcare sector, and expects this trend to continue.

He also pointed to a structural change that has occurred over the decades, with the growth of private markets offering alternative financing. This has led some companies to delay or avoid IPOs altogether. In the US, the public market remains deep and liquid, in contrast to other regions such as the UK, where there is a growing trend of companies leaving the exchanges or forgoing entry.

Livingstone mentioned the example of Zeekr, a subsidiary of Chinese electric vehicle manufacturer Geely, which successfully floated on the New York Stock Exchange. This raises the question of the persistence of cross-border IPOs in New York despite geopolitical tensions. In his view, the quality of US capital markets remains a key factor.

Turning to Europe, Livingstone stressed the need for structural changes to strengthen capital markets, particularly in the wake of Brexit. He acknowledged the efforts of France and other European countries to deepen their capital markets, but expressed doubts about their ability to compete with the US in the near future.

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