U.S. IPOs surge 32% in H1 2025 as Circle CoreWeave shares jump over 230% each

The U.S. IPO market has regained momentum in 2025, with 103 offerings in the first half of the year, surpassing the 78 recorded during the same period in 2024, according to Dealogic [1]. This resurgence follows years of subdued activity, as companies re-enter public markets amid expectations of economic growth under the Trump administration and a recalibration of regulatory frameworks. However, analysts caution that while the current environment differs from the exuberance of 2021—a record-breaking year for IPOs—investors must remain cautious to avoid a repeat of the post-2021 slump.

The first half of 2025 saw $17 billion raised through IPOs, with Venture Global’s $1.75 billion listing in January marking the largest offering to date. The market’s resilience has been bolstered by strong performances from select firms. Circle Internet Group, a stablecoin issuer, surged over 230% from its June 5 IPO price, trading at $230 by mid-July [1]. Similarly, CoreWeave, an AI infrastructure provider, rebounded from a weak March debut, with its share price climbing 231% by July. These successes have drawn attention to a broader pipeline of companies, particularly in technology and healthcare, signaling a shift toward more fundamentally sound businesses.

Analysts like Rachel Gerring of EY and Mike Bellin of PwC highlight that companies going public in 2025 are generally larger, more profitable, and better positioned for long-term growth compared to the speculative frenzy of 2021. This contrasts with the sharp contraction in IPO activity from 908 in 2021 to 149 in 2022, a period marked by market volatility and regulatory uncertainty. Bellin notes the current environment is characterized by a "deeper pipeline of quality companies," though macroeconomic risks—such as inflation, interest rates, and potential shifts in Trump-era trade policies—remain significant headwinds [1].

For investors, the challenges of participating in IPOs persist. Lockup periods and restricted access often limit retail investors’ ability to capitalize on first-day gains, while post-issuance volatility can erode returns. Chime Financial, a fintech with a $11.6 billion valuation at its June IPO, faces scrutiny over its reliance on interchange revenue and competition from established rivals. Similarly, eToro, a trading platform that debuted in May, must navigate a crowded fintech landscape dominated by firms like Robinhood.

The path forward for the IPO market hinges on macroeconomic stability and regulatory clarity. Delays in listings are being observed as companies wait for clearer policy signals on tariffs and interest rates. Bellin emphasizes that while the door for IPOs is open, it remains "not wide open" due to lingering uncertainties. Investors are advised to focus on firms with sustainable business models and strong earnings trajectories, avoiding overhyped sectors prone to speculative swings [1].

The resurgence of IPOs in 2025 reflects a cautious optimism in capital markets, driven by corporate confidence in long-term growth and a more disciplined approach to public offerings. However, the lessons of 2021—marked by a rapid post-IPO decline—serve as a reminder that market conditions can shift swiftly, requiring investors to prioritize fundamentals over fleeting trends.

Source: [1] [title: IPOs are hot again. How investors can avoid a 2021 style hangover] [url: https://fortune.com/2025/07/28/ipos-stock-market-circle-chime-coreweave-etoro/]