IPO Market Overview - The US IPO market raised over $41 billion in 2024, surpassing the $24 billion in 2023 and $22 billion in 2022, marking the best year since 2021 [6] - The record for IPO fundraising was set in 2021 with $316.6 billion, driven by low interest rates [12] - Market participants anticipate a boom in IPO activity in 2025 due to expected regulatory easing and Federal Reserve interest rate cuts [14][15] Top IPOs of 2024 - Lineage, the world's largest cold-storage warehouse operator, raised $5.10 billion in July, the largest US IPO since Arm Holdings' $5.23 billion float in September 2023 [2] - Viking Holdings, a cruise company, raised $1.77 billion in May [10] - StandardAero, an aircraft maintenance provider, raised $1.66 billion in October [3] - Amer Sports, a Finnish sporting equipment company, raised $1.57 billion in January [4] - UL Solutions, an applied safety science company, raised $1.09 billion in April [5] Factors Influencing IPO Activity - The Federal Reserve's interest rate hikes starting in March 2022 cooled IPO activity by increasing borrowing costs and competition for investor cash [8] - Deregulation is expected to make it easier for early-stage companies to grow and attract investors [7] - The private market surge in 2024 has provided alternative funding sources for companies like SpaceX and OpenAI, reducing the urgency for IPOs [13] Future IPO Prospects - AI chip startup Cerebras Systems and Swedish payments processor Klarna are likely to test investor appetite for IPOs in 2025 [9] - Cryptocurrency-related companies are expected to see increased investor interest under the new crypto-friendly White House administration [13] - Mature companies are likely to follow suit and go public in 2025 if post-IPO trading performance is strong [13] Historical Context - The IPO market declined after 2021 due to the fading SPAC craze and disappointing post-IPO performances, such as Rivian Automotive losing over three-quarters of its value since its 2022 IPO [16] - US IPOs fell 16% on average on their first day of trading in 2022 [16]
IPOs Gained Momentum in 2024. Next Year Could Be Even Bigger.