After years of sluggish activity, initial public offerings (IPOs) are coming back. A growing number of companies — from artificial intelligence (AI) cloud computing firms to healthcare giants — are testing the public markets, signaling renewed confidence in the economy and investor appetite for new opportunities. 

Why IPOs are making a comeback

The uptick in IPO activity isn’t happening in a vacuum. Several factors seem to be fueling this renewed momentum:

• Market stability – Inflation remains relatively stable, interest rates have leveled off, and stock valuations remain strong, creating favorable conditions for companies looking to raise capital. However, ongoing fluctuations in the stock market, partly driven by concerns over potential tariffs and their impact on supply chains, have introduced pockets of uncertainty. Despite this, investor enthusiasm for new offerings remains resilient. EY predicts a solid year for IPOs in 2025, after 2024 saw a 45% increase year-over-year.¹

• The return of tech IPOs – After a post-pandemic slowdown, the tech sector is once again leading the IPO charge. Companies specializing in AI, cloud computing, and cybersecurity are drawing strong investor interest, with some reaching pre-2020 IPO levels.²

• Private equity’s big moves – Many of 2025’s IPOs are backed by private equity (PE) firms eager to capitalize on the strong market.³ As valuations rise, these firms are taking advantage of the window to cash out after years of holding onto investments during a slower IPO cycle.

• Investor confidence rebounds – Markets thrive on sentiment, and after a cautious few years, investors are once again showing enthusiasm for new offerings —especially in high-growth sectors like AI and fintech. While trade policies and geopolitical concerns are influencing short-term market swings, long-term confidence in innovative industries remains strong.⁴

• IPO market returns to pre-pandemic norms – According to NYSE Group President Lynn Martin, the 2025 IPO market is expected to raise approximately $50 billion, reflecting a more measured pace similar to pre-pandemic years.⁵ First-time share sales in the U.S. have already raised $9.8 billion through early March, a 36% increase from last year.⁶

• Volatility isn’t stopping IPOs – While recent market fluctuations have led to brief selloffs, Martin remains confident that IPO momentum will continue unless volatility becomes extreme.⁷

Read more: Private equity turns to luxury brands, beauty, hotels and sports teams

Notable IPOs of 2025

Several companies have already gone public, or plan to soon: 

• CoreWeave – The cloud computing firm, which specializes in AI infrastructure, has drawn major attention as it prepares for a highly anticipated IPO. Backed by Nvidia, CoreWeave is expected to raise over $3 billion.⁸

• Medline Industries – The medical supply giant is set to raise over $50 billion.⁹

• MNTN – The adtech firm tied to Ryan Reynolds has filed for an IPO, reflecting growing investor interest in digital marketing and connected TV advertising.¹⁰ The company's platform has gained traction as advertisers shift spending from traditional media to digital.

• Venture Global – The liquefied natural gas producer raised $1.75 billion in its January IPO, lower than its original plan to raise up to $2.3 billion.¹¹

• SailPoint – Backed by Thoma Bravo, this cybersecurity company raised $1.38 billion in its February IPO but the stock closed below its offering price.¹²

IPO performance

While more companies are going public, not all IPOs are delivering blockbuster returns. A Reuters analysis found that while some recent IPOs have seen strong initial gains, others have struggled post-listing, reinforcing the importance of due diligence.¹³ Recent market fluctuations, fueled by concerns over trade policy and potential cost increases from tariffs, have added complexity to IPO performance. However, the underlying fundamentals of many newly public companies in general remain strong, especially in industries benefiting from long-term secular trends.

Despite a measured pace compared to 2021’s record-breaking year, IPOs in the U.S. have raised $103 billion since 2022.¹⁴

Read more: Private equity vs. public equity: What’s the difference?

Looking ahead

The momentum in the IPO market is expected to continue throughout 2025, though the pace will likely align more closely with historical norms rather than the extremes of recent years. Companies with solid fundamentals and clear growth strategies are still finding opportunities to go public, even as investors navigate some market uncertainty.¹⁵