The next wave of tech IPOs could help revive muted financial markets, Goldman Sachs CEO David Solomon told CNBC’s David Faber.
Companies including chip designers Arm and Instacart have filed for IPOs, and companies mulling listings will be watching how those IPOs play out, Solomon said in the interview Thursday.
“Over the next few months, especially if Arm and some of these other IPOs do well, I think you’re going to see a significant increase in activity,” Solomon said.
A rebound in IPOs and mergers would be welcome for Goldman and the rest of Wall Street, which has faced a lack of activity over the past year. After experiencing a record year in revenue in 2021, Solomon faced internal dissension and criticism over his decisions and leadership style in a series of unflattering articles.
Salomon responded to the negative coverage, repeatedly saying he did not recognize the “caricature” of himself depicted in the stories.
“It’s not fun, you know, to see some of the personal attacks in the press,” Solomon said. “I don’t recognize the caricature that was painted about me. I’ve spoken to many colleagues and clients, they don’t recognize this caricature either.”
During this in-depth interview, Solomon discussed increased banking regulation, Goldman’s scaling back of consumer credit ambitions, and the merger market. Acquisitions should pick up as CEOs regain confidence in the coming months, he said.
“The sentiment I hear from CEOs around the world is to try to respond,” Solomon said, while warning that the rebound from mergers would be less than that from IPOs.