Can 2025 Break the IPO Dry Spell?

Rick Crane
3 Min Read

As of 2025, more than a dozen initial public offerings (IPOs) have commenced trading, with the most recent debut occurring on Thursday. However, the market’s response to these launches has largely been lukewarm. Despite this, Nasdaq’s president remains optimistic about the potential for a resurgence in the IPO market this year. Nelson Griggs expressed his belief during an interview on CNBC’s “ETF Edge,” stating, “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.”

Griggs likened the IPO landscape to a pendulum that oscillates between periods of private and public investment. He noted, “We have a track record now. If you get three straight years of limited capital raised in public markets, there’s an enormous pipeline.” However, not all companies are experiencing smooth sailing in their IPO endeavors. For instance, Panera Brands has encountered numerous challenges in its quest to go public, while Twin Peaks, which began trading on Thursday, is a spinoff of Fat Brands aimed at alleviating debt.

Interestingly, newer companies, particularly in the AI sector, such as OpenAI, continue to thrive and attract funding in the private market, diminishing their motivation to pursue an IPO. Griggs acknowledged that recent innovations in the private sector have provided companies with greater access to liquidity, enabling them to secure funding without the need to go public. “There is a massive convergence of public and private,” he stated, adding, “even in the private space, you can now have access to more liquidity. But if you want deep, sustained liquidity, you need to go public.”

He emphasized that while these innovations have transformed the private investment landscape, they do not signify a permanent shift. Griggs pointed to market trends, suggesting that as yields improve and valuation discounts narrow, the allure of the public markets will regain its appeal.

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**Disclaimer**: This content is for informational purposes only and should not be considered financial advice.

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