Core Viewpoint - The IPO market is experiencing a significant rebound in Q3 2025 after a subdued first half, with companies like Circle Internet Group Inc. and CoreWeave Inc. exceeding expectations upon their public debut [1][4]. Factors Contributing to IPO Rebound - The IPO market was previously subdued due to a poor macro-environment and private companies staying private longer than historical norms [2][3]. - Companies are now averaging nearly 11 years of being private before going public, an increase from the seven-year average in 2014 [3]. - Only 84 IPOs were issued in the first half of 2025, down from over 100 in the same period last year [4]. Recent IPO Performances - Figma Inc. had a remarkable IPO debut, opening at $33 and reaching $115 by the end of the first day, marking a gain of over 200% from the opening price [6][9]. - Figma reported over 13 million active users and $228 million in revenue for Q1 2025, reflecting a 46% year-over-year increase, with a net income of $44.9 million [7]. - MNTN Inc. reported $68.46 million in revenue for its first earnings release as a public company, representing a 25% year-over-year increase [13]. Investor Sentiment and Market Trends - There is a strong demand for IPOs, with nine out of 16 IPOs raising over $50 million occurring in June 2025 [8]. - The sectors driving this demand include artificial intelligence and crypto-related businesses, as evidenced by the strong performances of CoreWeave and Circle [8]. - Anticipation of accommodative monetary policy from the Federal Reserve could further stimulate the IPO market [8].
IPO Market Stays Hot With These 2 Debuting Stocks