INVEST IS IT SAFE TO GET BACK IN THE IPO WATERS?

INVESTORS kicked off 2025 hoping to see the healthy return of what had become a rare species: the initial public offering, or IPO. After three years of stalled transactions and historically low deal activity, many believed the Trump administration would prioritize deregulation and economic growth, triggering a healthy flurry of new IPOs in the process.

- BY ALICIA ADAMCZYK

And indeed, that confidence led to the busiest start of a year for IPOs since the boom of 2020 and 2021. To be sure, after an initial burst of exuberance, March and April were rocky: A gale of macroeconomic forces—including tariffs and persistently high inflation and interest rates—led the pipeline to dry up as some firms put IPO plans on ice.

In the late spring, though, equities rebounded, and the pulse of the IPO market picked up again. Volume reached a total of 103 IPOs in the first half of 2025 on U.S. exchanges, compared with 78 for the same period in 2024, according to Dealogic analysis. The largest IPO so far has been for Venture Global, a liquefied natural gas exporter, which successfully raised $1.75 billion in January; in all, the year's first-half IPOs raised $17 billion. (We offer outlooks on these pages for four of the most widely watched members of this year’s IPO class.)

Analysts and investors are optimistic that IPOs will remain strong into the fourth quarter, following a typical period of quiet through Labor Day.

Many analysts now view the current market conditions as a return to form, and expect 2025 to be the best year for IPOs since 2021, another step in the slow and steady climb back to pre-COVID levels of activity. And that could provide plenty of opportunities for discerning investors.

ENCOURAGING SIGNS

Several recent high-profile success stories illustrate why some analysts remain bullish. A flashy debut from Circle Internet Group saw the stable-coin issuer trading up post-issuance, and the company has experienced an extraordinary surge since its June 5 IPO. Its share price opened at $69 before peaking at over $263 later in the month; in mid-July it hovered around $230, more than triple its IPO price.