U.S. IPO Market Outlook for 2025

(Reuters) – The U.S. IPO market is expected to have a significant resurgence in 2025, driven by the return of business-friendly Donald Trump to the White House, declining interest rates, and renewed risk-on sentiment in equity markets.

Some high-profile names likely to headline this year’s IPO market resurgence include Swedish payments firm Klarna, fintech giant Chime, AI-focused chip firm Cerebras, and medical supplies provider Medline.

The performance of recent listings serves as a key measure of investor sentiment, and their success typically encourages other companies to proceed with their offerings.

Major Upcoming Listings for 2025

• Venture Global LNG will kick off the year and assess investor appetite for energy IPOs following Trump’s support for the industry.

Overview of Recent Major IPO Performances

1. ARM Holdings: Raised $4.87 billion in September 2023, with a valuation of $54.5 billion. Shares rose 10% on debut, gaining nearly 200% since.
2. Instacart (Maplebear Inc): Raised $660 million at a $9.9 billion valuation in September 2023. Shares increased 40% at the open, now trading 8.2% higher.
3. Viking Holdings: Raised $1.54 billion in April last year, valued at $10.35 billion. Shares surged 86% since opening 9% above the offer price.
4. StandardAero: Valued at $8 billion, raised $1.44 billion in October last year, and began trading 29% above the offer price but decreased by 13.22% since.
5. Lineage: Raised $4.45 billion in its July 2024 listing with a valuation of over $18 billion. Stock dropped 25.6% since its debut.
6. Reddit: Raised $748 million in March last year with a valuation of $6.4 billion. Shares opened 38% above the offer price and increased over four-fold.
7. Birkenstock: Raised $1.48 billion at a valuation of $9.3 billion in October 2023, debuting 11% below its IPO price, with shares up 43% since.
8. Zeekr: Chinese EV maker raised $441 million in May last year at a $5.5 billion valuation. Shares dipped about 3% since opening 24% above their IPO price.
9. Kenvue: Johnson & Johnson’s consumer health unit raised $3.8 billion in May 2023 with a valuation of $48 billion. Shares fell nearly 19% since debut.
10. Waystar: Healthcare payments firm raised $968 million, valuing it at $3.7 billion. Shares soared 80% since opening 2% below IPO price.

Note: Stock performance since debut is calculated based on the opening trade.

Sources: Filings, LSEG, Reuters’ reports.