#IPOWave Here’s a breakdown of the “IPO wave” — what it is, where we stand (especially in the U.S.), what’s driving it, what the risks are, and what to watch — in clear English.

📚 What is meant by an “IPO wave”?

An initial public offering (IPO) “wave” refers to a surge in the number and size of companies going public (i.e., listing on stock exchanges). Factors that create such waves include:

Strong investor demand for new listings

Low interest-rates or strong equity markets

A backlog of companies deciding to go public after waiting for favourable conditions

Sector momentum (e.g., tech, AI, biotech) that encourages many firms to list around the same time

🇺🇸 Where we stand: U.S. IPO market in 2025

Here are the key signals from recent data:

The U.S. IPO market showed strong activity in Q3 2025: about 64–65 IPOs raising roughly US$15.3-15.7 billion in proceeds.

For the first nine months of 2025, deal counts and proceeds have already matched or exceeded full-year 2024 levels.

There’s strong investor appetite for IPOs that are well positioned (especially in tech, AI) and priced prudently (i.e., leaving room for post-listing gains).

But there are headwinds: The market has become more cautious. For example, the Securities and Exchange Commission (SEC) backlog, political/market uncertainty, and some recent IPOs that have under-performed are dampening enthusiasm.

✅ What’s driving the wave

Better market sentiment: As equity markets recover or stabilise, companies feel more confident to go public.

Large backlog of private companies: Many firms had delayed IPOs during the pandemic / high-rate environment and are now re-entering the listing queue.

Sector-specific tailwinds: Technology, AI, fintech and other innovation-oriented sectors are hot, attracting investor interest and enabling large listings.

Favourable pricing & first-day performance: In the first half of 2025, many IPOs had strong first-day returns (which boosts investor confidence).