IPO Pops Are Back

The IPO market has experienced a significant resurgence in 2025, with U.S. listings raising $50 billion across 277 offerings and achieving an average day-one pop of 34%, marking the second strongest performance since 2014. Collectively, 2025 IPOs have gained 27% year-to-date, nearly doubling the S&P 500's return. Nasdaq Stockholm also demonstrated robust activity, raising €6 billion with an average 19% day-one pop. Forward-looking Nasdaq IPO Pulses for both the U.S. and Stockholm indicate this strong momentum is projected to continue into early 2026, despite potential temporary halts from U.S. government shutdowns.

Analysis

The U.S. IPO market has demonstrated a significant resurgence in 2025, with $50 billion in capital raised across 277 offerings, including 175 operating companies. This performance marks the strongest year for IPOs since at least 2021 by multiple metrics, including 22 large IPOs exceeding $500 million. Operating companies achieved an average day-one pop of 34%, doubling 2023/2024 figures and representing the second strongest performance since 2014.

Beyond initial trading, the 2025 IPO cohort has collectively gained 27% year-to-date from their IPO price, nearly doubling the S&P 500's 15% return. Larger IPOs, measured by capitalization, have shown a tendency for better returns. Internationally, Nasdaq Stockholm has also seen robust activity, raising €6 billion—six times last year's capital—with an average day-one pop of over 19%.

Forward-looking Nasdaq IPO Pulses for both the U.S. and Stockholm have risen for five consecutive months, reaching multi-month highs, signaling a continuation of strong IPO activity into early 2026. However, the U.S. IPO market faces a potential temporary halt during government shutdowns, as SEC review and approval of filings would be suspended. Historically, such shutdowns have averaged eight days, with the longest lasting 35 days.

Key Decisions for Investors

• Investors should consider increasing exposure to the IPO market, focusing on larger offerings that have demonstrated superior post-listing performance and strong day-one pops.
• Monitor U.S. government shutdown developments closely, as these could temporarily halt new IPO filings and impact market timing, despite the overall positive forward-looking IPO Pulse.
• Evaluate opportunities within the European IPO landscape, particularly in Nasdaq Stockholm, which is experiencing significant capital inflows and strong average day-one returns.