Market Participants Anticipate a Surge in IPOs in the U.S. by 2025

In the U.S., initial public offerings (IPOs) reached the highest level seen since 2021 in 2024. According to capital markets data provider Dealogic, companies going public in the U.S. raised over $41 billion by the end of December; this figure surpasses the approximately $24 billion raised in 2023 and the $22 billion raised in 2022. However, this amount is still a small fraction of the record $316.6 billion raised in 2021, when IPO candidates rushed to raise funds during a period of low interest rates. Nevertheless, investors are expecting an increase in IPO activity next year.

Ross Carmel, a partner at IPO-focused law firm Sichenzia Ross Ference Carmel, stated, "Deregulation will facilitate early-stage companies to gain interest and grow in their unique private market." The potential IPOs of artificial intelligence chip venture Cerebras Systems and Swedish payment processor Klarna next year could test investors' appetite for public offerings.

"If they perform well post-IPO, I expect other mature companies to follow suit and go public in 2025,” said Carmel, adding that crypto-related companies could also benefit from the increased investor interest under the new crypto-friendly White House.