2024 IPO Market Review and 2025 Expectations
2021 marked a historic year for U.S. IPOs, with over 1,000 companies going public, including SPACs. However, this momentum sharply declined in 2022 due to challenging market conditions like high inflation, rising interest rates, and geopolitical instability. The downturn continued into 2023, with only limited activity in the IPO market. In 2024, however, the market showed notable improvement, driven by stabilizing inflation and a rebound in key sectors, offering a glimmer of hope for a more robust revival in 2025. In this article, I will review the progress of the 2024 IPO market and explore its implications for the year ahead.
2024 Recap: A Year of Gradual Recovery
After a subdued period in the IPO market, 2024 witnessed a gradual revival. There has been 218 IPOs in 2024 so far, A total of 162 operating companies and 56 SPACs . This marked the highest listings volume in three years, reflecting growing optimism for IPOs in 2025, particularly under the incoming presidency of Donald Trump.
One of the year’s most notable IPO events involved President Trump himself. His social media company, Trump Media & Technology Group Corp., went public through a long-awaited SPAC merger with Digital World Acquisition Corp. in March. Trading under the ticker symbol $DJT, the stock experienced significant volatility, reaching a high of $79 and falling below $12 within the year.
Around the same time, another social media giant, Reddit, went public under the ticker symbol $RDDT. Reddit’s IPO was particularly significant for retail investors, given the platform’s pivotal role during the COVID-era retail trading boom through communities like WallStreetBets. Additionally, Reddit’s involvement in cryptocurrency and the fact that OpenAI CEO Sam Altman is one of its top stakeholders added further appeal to the IPO.
Later in the year, two major IPOs captured investor attention. Lineage Inc. ($LINE), a real estate investment trust, raised $4.4 billion in its debut, making it the largest IPO of 2024. Meanwhile, health-tech company Waystar ($WAY) completed the year’s largest IPO in its sector, becoming the largest health-tech IPO of 2024.
As the year closed, ServiceTitan made headlines with a landmark IPO in the tech sector. On December 12, 2024, the company debuted on the Nasdaq under the ticker symbol $TTAN, raising approximately $625 million. Shares surged 42% on their first trading day, opening at $101 and valuing the company at nearly $9 billion. This success marked a significant milestone for venture-backed tech IPOs, which have been scarce since late 2021.
List of the 5 Largest IPOs of 2024
| Ticker | Name | IPO Price | Current Price | Return | IPO Size |
| $LINE | Lineage, Inc. | $78.00 | 59.52 | -23.69% | 4.44B |
| $SARO | StandardAero, Inc. | $24.00 | 24.98 | 4.08% | 1.44B |
| $AS | Amer Sports, Inc. | $13.00 | 27.69 | 113.00% | 1.37B |
| $VIK | Viking Holdings Ltd | $24.00 | 43.38 | 80.75% | 1.27B |
| $KSPI | Joint Stock Company Kaspi.kz | $92.00 | 97.08 | 5.52% | 1.04B |
The 5 Top-Performing IPOs of 2024 (Excluding Companies Below $1B Market Cap)
2024 SPAC Market: A Mixed Recovery
The SPAC IPO market showed signs of recovery in 2024, with 56 blank-check companies going public compared to just 31 in the previous year, marking a significant rebound in new listings. However, despite this improvement, other aspects of the SPAC market struggled to gain similar momentum.
Completed transactions fell to a record low, with only 71 SPAC mergers finalized in 2024, down from 98 in the previous year. The slowdown extended to deal announcements as well, with just 81 definitive agreements signed this year compared to 160 in 2023. These declines highlight ongoing challenges in converting SPAC listings into successful business combinations.
While the increase in SPAC IPOs reflects renewed activity, the broader market continues to face headwinds.
2025 Outlook: Anticipation of a Robust Market
- Several key indicators suggest that 2025 could bring a strong rebound for the IPO market, driven by a mix of favorable policies, economic stability, and industry momentum:
- Economic Policies: The pro-business agenda expected under President-elect Donald Trump, including deregulation and tax incentives, is anticipated to create a supportive environment for companies looking to go public. Market sentiment suggests these policies could energize IPO activity significantly.
- Interest Rate Environment: The expectation of lower interest rates in the U.S. is likely to provide a favorable backdrop for IPO activity. Lower borrowing costs could make it easier for companies to expand and attract investors, boosting market conditions for new listings.
- Technological Advancements: Innovation in fields such as artificial intelligence and cloud computing is fueling a wave of high-profile IPO preparations. For example, CoreWeave, a cloud computing company backed by Nvidia, is planning a substantial public offering in 2025, signaling strong demand for tech-driven enterprises.
Conclusion
The IPO market in 2024 has laid a solid foundation for what many anticipate to be a dynamic 2025. With supportive economic policies, technological innovation, and increased private equity participation, the coming year holds promise for companies and investors alike. However, staying attuned to market conditions and regulatory landscapes will be essential for navigating the evolving IPO environment.
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investments involve inherent risks, including the total loss of principal, and past performance is not indicative of future results. Investments in Initial Public Offerings (IPOs) and Special Purpose Acquisition Companies (SPACs) carry unique risks. IPOs may involve heightened volatility, limited operating history, and insufficient public information about the company. IPO shares may also be subject to lock-up periods, liquidity constraints, and unpredictable market conditions. SPACs may not be suitable for every investor, as they involve specific risks such as uncertainty about the underlying acquisition and potential for market volatility. We encourage investors to thoroughly read the offering prospectus related to each IPO or SPAC, and carefully consider these factors in relation to their investment goals, financial situation, and risk tolerance. Prospective investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions. BBAE has no position in any investment mentioned.
