The initial public offering (IPO) market could be on the verge of a significant revival in 2025, according to Nasdaq's president, Nelson Griggs. With the first half of the year already witnessing activity, including more than a dozen companies beginning to trade, optimism is growing around the potential for a robust comeback. Griggs believes that a combination of favorable market conditions and a backlog of companies awaiting public listing could rejuvenate investor interest.
The latest company to join this wave is Twin Peaks, a sports bar concept that emerged as a spinoff from Fat Brands. This IPO aims to generate funds to help alleviate Fat Brands’ debt. Griggs emphasizes that the IPO landscape often resembles a pendulum, swinging between periods of private and public investment. He notes that if the public markets experience three consecutive years of limited capital raised, there will emerge an extensive pipeline of companies eager to go public.
Recent trends indicate that many companies are currently opting to remain private. Innovations in the private sector have enabled businesses like OpenAI to access substantial liquidity without needing to pursue an IPO. This has provided them with less incentive to transition into the public sphere. Meanwhile, companies like Panera Brands have faced challenges in their attempts to go public, highlighting the difficulties some businesses encounter in navigating this complex landscape.
Griggs remains optimistic about the potential for growth in the IPO market. He stated, "I do think we start seeing things really start to pick up more in the back half of the year. But even the first half of the year, we're starting to see some activity already." His confidence is partly based on the notion that as yields improve and valuation discounts lessen, public markets will regain their health.
The contrasting dynamics between public and private markets have influenced investor behavior over recent years. Griggs pointed out, "There is a massive convergence of public and private, because even in the private space, you can now have access to more liquidity." This change has allowed many companies to fund their operations and growth without resorting to public offerings.
As 2025 unfolds, the IPO pipeline appears to be filling up with numerous companies waiting for favorable conditions to launch their public offerings. Griggs reflected on Nasdaq's achievements, saying, "We have a track record now," suggesting that the exchange is well-positioned to support new entrants into the market as conditions stabilize.
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