The Resurgence of IPOs and SPACs in 2025
Summary:
The IPO market in 2025 witnessed a significant recovery, building on the momentum from the previous year. A total of 354 U.S. equity market IPOs raised $44 billion, showcasing increased investor confidence and market activity. This resurgence was fueled by sectors like Information Technology and Industrials, with notable IPOs such as CoreWeave, Inc. and Medline, Inc. Additionally, SPACs rebounded to near-2020 levels, indicating a revival in alternative investment vehicles.
What This Means for You:
- Investment Opportunities: With IPOs and SPACs on the rise, consider diversifying your portfolio with newly listed companies in high-growth sectors.
- Market Trends: Stay informed about emerging sectors like AI and Healthcare, which dominated 2025 IPOs, to identify potential long-term investments.
- Risk Management: Be cautious of IPO “pops” that may fade over time—monitor post-listing performance to make informed decisions.
- Future Outlook: Prepare for a potentially historic IPO market in 2026, with companies like SpaceX and OpenAI rumored to go public.
Original Post:
In 2025, the initial public offering (IPO) market continued to rebound from the 2022 and 2023 slump. For the second year in a row, markets saw more IPOs, more special purpose acquisition companies (SPACs), and more capital raised at IPO. Looking at the data, IPOs gained strength toward the end of the year—IPOs raised more money, and SPACs rebounded to almost 2020 levels.
2025 IPOs Increase for Third Straight Year
Using data from Jay Ritter, a well-known IPO academic with a long history of activity, we analyze historic IPOs of U.S. companies. Ritter’s data excludes exchanged-traded funds and categorizes companies with IPO prices under $5, SPACs, banks, unit offers, partnerships, trusts, and REITs separately.
Chart 1: IPOs Continued to Rise in 2025
In 2025, we saw a total of 354 U.S. equity market IPOs—136 more than in 2024 and 206 more than in 2023, but still well below 2021’s high. Operating company IPOs are yet to reach levels seen in the latter half of the 2010s.
2025 IPOs Raised $44 Billion
Capital raising continued to increase in 2025, with (non-SPAC) IPOs raising a total of $44 billion—$14 billion more than in 2024 and $24 billion more than in 2023.
Chart 2: Capital Raised in IPOs Increases
Industrials and Tech Companies Dominated 2025 IPOs
With the AI boom, Information Technology companies made up over 25% of 2025 IPOs, while Industrials companies accounted for a significant portion as well.
Chart 3: Tech and Industrials Made Up Over Half of 2025 IPOs
Day-One Returns Continued Their Positive Trend
In 2025, the median IPO pop was 13%, and the average IPO pop was 22%, with 71% of companies experiencing positive pops.
Chart 4: IPO First-Day Returns Distribution
Good IPO Pop Faded More Than Normal
Despite fading median performance, longer-term median returns for 2025 IPOs held up better than in 2024 and 2023.
Chart 5: 2025 IPOs Performed Better in the Long Run Than the Last Three Years
Unicorns Were Less Special in 2025
In 2025, the size bias to returns disappeared, with unicorns no longer significantly outperforming smaller companies.
Chart 6: 2025 IPOs Returns Through End of Year
SPAC Recovery: By Count and Size
SPACs rebounded in 2025, with 120 still actively seeking targets and 24 having announced deals.
Chart 7: New SPAC Listings Almost Tripled in 2025 Compared to 2024
More 2025 SPACs Raised More Capital Than 2023 and 2024
The median SPAC raised $200 million in 2025, aligning with 2016–2020 levels.
Chart 8: More 2025 SPACs Raised More Capital Than 2023 and 2024
