The U.S. initial public offering market is closing 2024 strong, with the benchmark Renaissance IPO ETF (ticker: IPO) up a solid 23.7% year to date.
Overall IPO activity remains elevated nearing year-end, with 136 U.S. IPOs priced this year as of Nov. 27, up 32% over the same period last year.
Renaissance reports that total proceeds are also way up. They have risen to $28.8 billion so far in 2024, a 48.5% jump from 2023 and a 274% surge over 2022.
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Market watchers are bullish about the robust trend continuing well into the new year.
“I expect a rise in IPO activity across a number of sectors in 2025, given continued strong economic fundamentals, especially in the U.S.,” says Shawn DuBravac, CEO and president of Avrio Institute, a management thought leadership firm in New York.
“More lax government regulation in 2025 could also play a role in the IPO market, given that more lax regulation will likely drive greater M&A activity,” DuBravac says.
DuBravac believes there’s a strong investor appetite right now for innovation and growth, which bodes well for the IPO market. “Moreover, despite the Federal Reserve cutting interest rates and quantitative tightening, a significant amount of capital remains in money market funds, with U.S. MMF assets reaching a record high of $7 trillion,” he says.
What IPO is expected to attract the most investment interest in 2025? Here’s a snapshot of seven IPOs that should pop in the new year:
| Upcoming IPO | Estimated IPO Valuation |
| Stripe | $70 billion |
| Klarna | $14.6 billion |
| CoreWeave | $35 billion |
| StubHub | $16.5 billion |
| SpaceX | $200 billion to $250 billion |
| ServiceTitan (TTAN) | $7.3 billion |
| Cerebras Systems (CBRS) | $7 billion to $8 billion |
Stripe
IPO valuation estimate: $70 billion
Industry experts see digital payments company Stripe as being among the largest IPOs come 2025. “Stripe will be a key potential IPO to watch for next year,” DuBravac says. “Stripe has recently been buying back shares at around a $70 billion valuation.”
While no specific IPO date has been announced, hopes abound that 2025 will be the year for a Stripe IPO. Senior management has been largely mum on the matter, although Stripe President John Collison recently told podcaster David Rubenstein that an imminent IPO could come “presumably at some stage.”
At one point, after a funding round in 2021, Stripe’s valuation surged to $95 billion. The company was founded by Collison and his brother, Patrick, after they left Ireland to attend Harvard University and Massachusetts Institute of Technology, then dropped out to start up Stripe in 2010.
Klarna
IPO valuation estimate: $14.6 billion
Another IPO that could gauge investors’ feelings post-election is Klarna, the emerging “buy now, pay later” powerhouse. The Swedish fintech company said Nov. 13 that it filed for a U.S. IPO with the SEC, leaving the price range for the IPO and other details undefined.
Klarna has been battling rival Affirm Holdings Inc. (AFRM) for position in the BNPL market. AFRM shares have more than held their own this year, up 34.9% as of Nov. 26.
“There’s been a deeper bear market in both public and private fintech markets than in other tech sectors, and with the election now in the rearview, investors want to know how Klarna will navigate the muddied interest rate picture,” says Jeff Bernstein, senior managing director at Riveron, an investment advisory company. “Additionally, investors will wonder about the overall health of the lower-income consumer who often uses Klarna to defer payments.”
CoreWeave
IPO valuation estimate: $35 billion
CoreWeave, the Roseland, New Jersey-based artificial intelligence company, will reportedly issue an IPO sometime in 2025 with an estimated valuation of $35 billion. The IPO is expected to raise $3 billion from the sale of its shares.
CoreWeave is immersed in the cloud-based data center and AI chip realm, with Nvidia Corp. (NVDA) as a key business partner. The company is fresh off a $650 million secondary share sale valued at $23 billion, with Fidelity Management and Jane Street among deal participants.
As is usual in the IPO market, risks are in play with CoreWeave. “Recent news around Nvidia’s new Blackwell chip overheating, while purely a short-term risk, could draw some caution on CoreWeave by investors looking to get exposure in the hyperscaler market,” Bernstein says.
StubHub
IPO valuation estimate: $16.5 billion
This event-ticketing giant has pushed its IPO date until after Labor Day, with no word on any specific IPO timeline heading into 2025. StubHub’s IPO valuation is estimated at $16.5 billion.
Launched in 2000, the online ticket service provider is now the largest ticket agency in the world after its Viagogo merger, which was completed in September.
When the time comes, StubHub could be one of the bigger IPO stories in 2024 or 2025, given its prime position in the $8 billion resale-ticket market. StubHub has no inventory, and it profits when big concerts and sporting events sell high-demand tickets.
StubHub also was hit with a lawsuit filed by Washington, D.C., Attorney General Brian Schwalb’s office on July 31. The suit cited a ticket-fee gambit called “drip pricing” that hits ticket buyers with high transaction fees, even those who paid low prices for their tickets.
When StubHub goes public, its business model and industry status should appeal to retail and institutional investors at a lower valuation rate than current estimates. The company averages nearly $1 billion in annual revenues and ranks third for ticket company website visits.
StubHub could wind up with a familiar competitor when its stock goes public, as digital ticket provider SeatGeek has also filed paperwork for an IPO with a reported $1.4 billion valuation and an estimated late-2024 debut.
SpaceX
IPO valuation estimate: $200 billion to $250 billion
The name that could blow all of the projected 2025 IPOs out of the water is Elon Musk’s popular aerospace company SpaceX. “If SpaceX were to IPO in 2025, it could do so with a valuation possibly well north of $200 billion,” says Michael Ashley Schulman, chief investment officer at Running Point Capital in El Segundo, California. SpaceX seems to be jockeying for a big position in the financial markets, with an upcoming tender offer with shares valued at $135 apiece, placing SpaceX at a valuation around $250 billion.
In the past, Musk has dismissed talk of an IPO, noting he wanted to avoid the share-price pressures that come with new publicly traded companies. “The legal load and pressure for short-term results for a public company are very high,” Musk stated in a June 27 X post.
If SpaceX does go the IPO route, however, it will bring plenty of clout to the table. The company commands two-thirds of all active global satellites via Starlink, its burgeoning satellite network. Starlink also already has over 4 million worldwide customers.
ServiceTitan (TTAN)
IPO valuation estimate: $7.3 billion
This cloud software company is a recent entrant in the IPO derby, filing its papers with the SEC on Nov. 18. ServiceTitan specializes in working with home service providers like HVAC, plumbing, roofing and electrical companies to help them run their businesses better.
ServiceTitan’s IPO was reportedly valued at $9.5 billion three years ago, but some analysts see its IPO valuation settling at $7.3 billion. The stock is set to go public on the Nasdaq before the end of 2024 under the TTAN ticker.
Glendale, California-based ServiceTitan has already raised a reported $1.5 billion in private funding and is now looking for more. The company’s financials are trending in the right direction: Revenues were up 26% for the six-month period ended July 31, compared with the same period in 2023. Meanwhile, net losses were down 12%.
Cerebras Systems (CBRS)
IPO valuation estimate: $7 billion to $8 billion
Cerebras is another rising technology company looking to go public with an estimated valuation of between $7 billion and $8 billion. The company, which operates in the AI-optimized semiconductor space, was expected to launch its IPO in late October but was delayed due to reported regulatory paperwork issues. The company’s ticker will be CBRS.
The Sunnyvale, California, company views its IPO as a chance to better compete with AI chip heavyweights like Nvidia, Advanced Micro Devices Inc. (AMD) and Intel Corp. (INTC). It’s already making headway, with revenues soaring 220% in 2023, although a single customer (United Arab Emirates AI company G42) contributed to 87% of revenue growth in the first half of 2024. Cerebras aims to raise up to $1 billion for its IPO.
A potential delay could result from a U.S. national security review of G42’s minority investment in Cerebras, however. G42 has drawn some heat amid federal concerns that companies in the UAE and other parts of the Middle East could be used by China to access advanced AI tech from the U.S., according to a Reuters report in October.
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7 Upcoming IPOs That Could Soar in 2025 originally appeared on usnews.com
Update 11/27/24: This story was previously published at an earlier date and has been updated with new information.
