NEW YORK – The number of initial public offerings (IPOs) in the United States has climbed to a four-year high, marking a clear rebound on Wall Street after several subdued years. While 2025 has been punctuated by several high-profile listings, a growing number of signals are prompting investors to question whether the market is drifting toward excess.
Year after year, the recovery in IPO activity has taken shape in the U.S. According to Renaissance Capital, a total of 202 IPOs raising more than $50 million were completed in 2025, generating $44 billion in proceeds. Both figures stand at their highest level since 2021, underscoring a sharp revival in appetite for new listings.
The rebound appears all the more striking given the choppy backdrop on Wall Street this year. Markets have been unsettled in part by U.S. trade policy, while volatility — a key gauge of investor nervousness — averaged 19 points in 2025. That level sits just below the 20-point threshold, beyond which launching a successful stock market listing typically becomes far more challenging.
Investor Appetite Holds Firm
Despite these headwinds, investor demand has remained robust, particularly for large-scale offerings. Among newly listed companies, the biggest names have clearly outperformed. Renaissance Capital estimates that, on average, stocks listed in 2025 posted a 2% gain over the year. For IPOs raising more than $100 million, however, average gains reached 18%, largely driven by the so-called IPO “pop” — the surge in share prices on the first day of trading.
The IPO of Figma stands as a striking example. Shares in the collaborative design software company were priced at $33, only to soar above $115 on their first trading day — a 350% jump, setting a record for an offering of that size.
Strong demand has also allowed large transactions to proceed smoothly. In December, pharmaceutical products manufacturer Medline raised $6.3 billion in its IPO, the largest such deal on Wall Street since 2021.
Crypto, Fintech, and Tech in the Spotlight
Several themes have shaped the IPO landscape this year. Cryptocurrencies have been a standout sector, benefiting from a more favorable regulatory climate under the Trump administration, including the passage of the Genius Act, which eased oversight rules. In early June, shares of Circle, the issuer of the USDC stablecoin — the second most widely used in the world — surged nearly 170% on their first day of trading. The company raised more than $1 billion and was valued at roughly $6.9 billion based on its IPO price.
Shares of Bullish, a cryptocurrency exchange platform, jumped 83% in their market debut.
Beyond crypto, fintech and technology stocks have also drawn strong interest. CoreWeave, a cloud computing startup, has gained around 90% since its listing in late March. Swedish “buy now, pay later” group Klarna rose 15% at its IPO in early September, opting for New York over Stockholm, citing more favorable market conditions on Wall Street.
Growing Fears of Excess
These sharp rallies, however, have fueled concerns about overheating. The post-IPO performance of several companies has disappointed. Klarna has since fallen 26% below its listing price, while online brokerage eToro has slid more than 30%, despite gaining 29% on its first day of trading.
Another warning sign has been the return of SPACs — special purpose acquisition companies. In 2021, the boom in these blank-check vehicles symbolized the speculative frenzy gripping U.S. markets. In 2025, the number of new SPAC listings more than doubled compared with 2024, reaching its highest level in four years.
For many investors, the resurgence of SPACs, combined with soaring IPO debuts and uneven post-listing performance, suggests that while Wall Street’s IPO market is back on its feet, it may once again be flirting with excess.
FAQs
Why have IPOs rebounded on Wall Street in 2025?
Improving market conditions, strong investor appetite, and pent-up demand from companies that delayed listings in previous years have all contributed to the rebound.
What is an IPO “pop”?
The IPO pop refers to a sharp rise in a stock’s price on its first day of trading, often signaling strong demand but also raising concerns about overvaluation.
Which sectors dominated IPOs this year?
Cryptocurrencies, fintech, and technology were among the most active and best-performing sectors in 2025.
Why are SPACs seen as a warning sign?
A surge in SPACs has historically been associated with speculative excess, as seen during the 2021 market boom.
Should investors be worried about excesses?
While the IPO rebound reflects renewed confidence, volatile performance after listings and the return of SPACs suggest investors should remain cautious.
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