The Nasdaq’s president, Nelson Griggs, believes this year could be the market’s comeback year for initial public offerings (IPOs). Despite over a dozen launches so far in 2025, many have received lukewarm reactions from investors. Griggs views the IPO market as a pendulum, swinging between waves of private and public investment.
He notes that despite limited capital raised in public markets for three straight years, there is an enormous pipeline waiting to be tapped. However, not all companies are ready to go public. Panera Brands has faced numerous roadblocks, while newer companies like OpenAI are thriving in the private market and may have less incentive to IPO.
Griggs acknowledges recent innovation in the private sector has allowed companies to access more liquidity, but he believes deep, sustained liquidity requires going public. He points to improved yields, compression of valuation discounts, and signs that investors are becoming more optimistic about returning to healthy public markets as indicators that the incentive to go public is returning.
Source: https://www.cnbc.com/2025/02/01/ipo-drought-ending-in-2025.html