Summary:
The U.S. IPO market has seen a significant resurgence in 2025, marking the strongest year since 2021 with 277 IPOs, $50 billion raised, and a robust day-one performance averaging 34%. Nasdaq Stockholm in Europe has also thrived, raising €6 billion, six times more than the previous year. Both markets are supported by rising IPO Pulses, indicating continued strength into 2026. However, the U.S. IPO market faces a temporary pause due to a government shutdown, delaying SEC approvals.
What This Means for You:
- Capitalize on IPO Opportunities: With IPO activity surging, investors should consider diversifying portfolios to include newly listed companies with strong day-one performance.
- Monitor Market Trends: Stay informed about the IPO Pulse indicators to identify upcoming opportunities in both U.S. and European markets.
- Prepare for Shutdown Impacts: Anticipate delays in U.S. IPOs until the government shutdown ends, and adjust investment strategies accordingly.
- Long-Term Outlook: The IPO momentum is expected to continue into 2026, signaling sustained growth potential in both regions.
Original Post:
Coming into this year, there was a lot of optimism that this would be a strong year for initial public offerings (IPOs), and that optimism has been met — IPOs are back!
And, as we’ll show, both the Nasdaq IPO Pulses suggest this strength will continue into 2026. The caveat being that the U.S. IPO market will be on hold until the government shutdown ends since the U.S. Securities and Exchange Commission needs to review and approve IPO filings. Historically, government shutdowns have lasted eight days on average, with the longest lasting 35 days.
U.S. IPO pop returns 2nd strongest since at least 2014
With less than three months left to go this year, the IPO market is booming:
- Most IPOs (277, including 175 operating companies)
- Most capital raised ($50 billion)
- Most big IPOs, with $500+ million cap raises (22)
- Strong day-one performance
U.S. operating companies have seen an average day-one pop of about 34%. Out of 175 IPOs, 72 gained over 10%, 18 rose at least 50%, and eight popped more than 125%!
In Europe, Nasdaq Stockholm has raised 6x the capital of last year
Nasdaq Stockholm has raised €6 billion this year, six times more than last year, despite fewer listings. It includes the biggest IPO in Europe since 2022, with average IPO pops up more than 19%.
IPO Pulses indicate upturns in IPO activity continue into 2026
The Nasdaq U.S. and Stockholm IPO Pulses have reached eight-month and seven-month highs, respectively, signaling sustained IPO activity into 2026.
Extra Information:
Bloomberg: Stockholm’s IPO Growth highlights why Stockholm is a hotspot for IPOs in Europe. AP News: Government Shutdown Impact explains how the current U.S. shutdown affects IPO filings.
People Also Ask About:
- What is an IPO? An IPO, or Initial Public Offering, is when a private company offers shares to the public for the first time.
- Why are IPOs important? IPOs provide companies with capital to grow and offer investors an opportunity to buy into early-stage companies.
- How do government shutdowns affect IPOs? Shutdowns delay SEC approvals, temporarily halting IPO activity.
- What drives IPO performance? Factors include market conditions, company fundamentals, and investor sentiment.
- Which markets are leading in IPO activity? The U.S. and Stockholm are currently the top IPO markets globally.
Expert Opinion:
The resurgence of IPO activity in 2025 underscores investors’ renewed confidence in both U.S. and European markets. The Nasdaq IPO Pulses suggest this trend will continue, offering lucrative opportunities for investors and companies alike. However, the temporary U.S. government shutdown highlights the importance of monitoring regulatory and macro-economic factors.
Key Terms:
- Initial Public Offering (IPO)
- Nasdaq IPO Pulse
- Government shutdown impact on IPOs
- Stockholm IPO market growth
- Investor sentiment in IPOs
- Capital raising trends
- IPO day-one performance
ORIGINAL SOURCE:
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