Mid-Year Jolt: Investment Banking Sees Surge in IPO Activity

Investment banking is experiencing a mid-year surge in IPO activity, with 12 companies raising $2.9 billion as of mid-August, nearly double the typical August performance over the past decade. Strong demand and healthy investor appetite are driving the surge, with companies like Bullish raising over $1 billion and opening at a price more than double its offer. Banks like JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley are seeing higher equity underwriting fees and their stocks are up sharply since April.

Investment banking is experiencing a mid-year surge in IPO activity, with 12 companies raising $2.9 billion as of mid-August, nearly double the typical August performance over the past decade [1]. Strong demand and healthy investor appetite are driving the surge, with companies like Bullish raising over $1 billion and opening at a price more than double its offer. Banks like JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley are seeing higher equity underwriting fees and their stocks are up sharply since April [2].

The end of summer usually marks one of the slowest periods of the year for investment bankers. However, this year, the IPO market has been particularly active. As of mid-August, 12 new issues worth at least $50 million have raised some $2.9 billion in capital. August typically saw nine IPOs raising an average of $1.5 billion collectively over the past decade [1]. Avery Marquez, research director at Renaissance Capital, noted that the surge in activity is not entirely unexpected given the quiet IPO market in recent years. He stated, "These companies would likely not be going public right now if there wasn't such a strong appetite for IPOs" [1].

One standout example of this surge is the crypto exchange operator Bullish (BLSH), which raised over $1 billion in its IPO and saw its stock open at $90 per share, nearly triple the $37 where the company priced its offering. By the end of its first trading day, Bullish had a market cap of $10 billion, almost double the company's IPO valuation [1]. Bullish is just one of the many tech and crypto names that have been successful in the IPO market this year.

The lack of a summer slowdown has been good for Wall Street banks. The pipeline halfway through the third quarter appears robust through the end of 2025, with companies like Klarna and StubHub looking likely to join the party this year [1]. JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley all reported increased revenue from equity underwriting fees over the previous quarter, with only JPMorgan's fees down year over year [1]. Morgan Stanley's CEO, Ted Pick, stated that the outstanding performance in equity underwriting this quarter is a positive leading indicator of the investment banking recovery [1].

The IPO market's activity is not just limited to the U.S. Dubai-listed Shuaa Capital is planning to launch new investment funds and reactivate its investment banking platform as part of a five-year plan to revamp the business for growth and value creation [2]. Shuaa Capital's investment banking segment offers boutique and traditional investment banking services, securities services, and a sales and trading platform focused on fixed income, currencies, and commodities. The company reported a net profit of 19 million UAE dirhams ($5.2 million) for the second quarter of 2025, its second consecutive profitable quarter [2].

The surge in IPO activity and the turnaround in investment banking performance are positive signs for the industry. As the third quarter approaches, the IPO market is expected to remain strong, driven by healthy investor appetite and robust company pipelines. The performance of major investment banks like JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley indicates that the investment banking sector is on the path to recovery [1].

References:

[1] https://finance.yahoo.com/news/ipo-market-surges-in-august-with-companies-striking-while-the-iron-is-hot-090028325.html
[2] https://www.zawya.com/en/capital-markets/equities/shuaa-capital-set-to-revamp-growth-investment-banking-platform-gpvt4i05