Goldman Sachs predicts a positive trajectory for initial public offering (IPO) activity in the U.S. throughout 2024. The forecast, made by Goldman Sachs strategists including Ryan Hammond and David Kostin, is based on expectations of continued economic growth and moderate decline in treasury yields.

Touting an optimistic outlook, the strategists remarked, “If soft data improve to match the hard economic data and equity investor pricing of economic growth, it could lead to a further increase in our IPO Issuance Barometer in coming months.”

According to a recent research report, the Goldman Sachs IPO Issuance Barometer has climbed to 119, marking its highest point since February 2022. Notably, the report highlighted that, excluding special purpose acquisition companies (SPACs) and spin-offs, the U.S. exchanges have seen the completion of 10 IPOs, with gross proceeds exceeding $25 million. Among these IPOs, eight were for U.S.-based companies, collectively raising $1.9 billion in gross proceeds.

Goldman Sachs predicts that if the current pace of activity is maintained, 2024 will surpass the IPO levels seen in both 2022 and 2023. A key factor driving this trend has been the decrease in equity drawdown and bond yields, with the strategists attributing it to the dovish pivot by the Federal Reserve and stronger-than-expected economic growth.

Additionally, a recent report from Bloomberg shed light on some upcoming IPOs anticipated in the second quarter of the year. These include Lineage Logistics, SeatGeek, Ibotta, and Rubrik, the latter of which is backed by Microsoft (MSFT).

Reflecting on historical IPO activity, the data from Stock Analysis reveals a decline in the number of companies going public in recent years. In 2023, 154 companies went public, compared to 181 in 2022, and a substantial 1,035 in 2021. Notably, the report compiled by Bloomberg also indicates a record $339 billion was raised in the U.S. in 2021, contrasting with the $26 billion raised in 2023.

Further adding to the IPO buzz is the speculation surrounding Reddit’s potential public offering. The social media platform is expected to file publicly in late February, followed by an early March roadshow and an IPO completion by the end of March. The projected valuation for Reddit is upward of $5 billion.

Looking ahead, the bright curtain rises on potential major IPOs, including well-known names such as bakery chain Panera, sports merchandise licensing firm Fanatics (FAN), Savers Value Village, fast-fashion giant Shein, Kim Kardashian’s Skims, and investment firm General Atlantic.