A boom in public offerings is expected in 2025, driven by the tech sector. Among the eight companies set to debut on the stock exchange, one aims to achieve the largest valuation in Wall Street history.
The public offering market continues to grow, with 2024 already reaching almost $30 billion in IPOs, a 130% increase compared to 2023. ETF Renaissance IPO, which tracks the performance of newly listed companies for up to three years post-listing, has risen 28% year-to-date, surpassing the S&P 500 and Nasdaq-100 with returns of 27% and 26%, respectively. This strong performance signals robust interest in recent IPOs.
For 2025, forecasts indicate IPO proceeds of up to 40 billion dollars from 80-85 new public offerings. A more favorable macroeconomic environment, coupled with potential interest rate cuts, is expected to drive this surge. According to Goldman Sachs, the number of companies ready to go public could more than double compared to 2024, bolstered by regulatory changes under the Trump administration.
Key players among the upcoming IPOs span sectors like e-commerce, financial services, digital advertising, and entertainment. Here are the most anticipated IPOs for 2025, ranked by valuation:
1) ServiceTitan
ServiceTitan is a cloud software company catering to home service providers like HVAC, plumbing, roofing, and electrical businesses. The company filed for IPO with the SEC on November 18 after raising $1.5 billion in private funding.
Financial results for the first half of 2024 show a 26% increase in revenue and a 12% reduction in net losses compared to the same period in 2023. The company’s IPO is estimated at $7.3 billion, despite a previous valuation of $9.5 billion in 2021.
2) Cerebras Systems
Cerebras Systems, a semiconductor company specializing in AI-optimized chips, aims to challenge giants like Nvidia, AMD, and Intel. Despite a 220% revenue increase in 2023, its IPO was delayed until October due to regulatory concerns over its heavy reliance on a single customer, G42 from the UAE.
US authorities fear this dependency could enable China to access sensitive AI technology. Cerebras Systems’ IPO could raise between $7 billion and $8 billion.
3) Klarna
Klarna, the Swedish fintech leader in buy-now-pay-later (BNPL) payments, filed for IPO on November 13 but has not disclosed pricing details. Analysts estimate the IPO could raise up to $14.6 billion.
4) StubHub
StubHub, the largest online ticketing platform for sports, concerts, and theater events, merged with Viagogo in September. The combined entity is expected to go public with an estimated valuation of $16.5 billion. Recent financial reports indicate annual revenues averaging $1 billion.
5) CoreWeave
CoreWeave, an AI-focused cloud platform, partners with Nvidia and other major tech players. The company raised $12 billion in funding over the past year, boosting its valuation from $2 billion in May 2023 to $19-20 billion today.
CoreWeave competes with cloud giants like Microsoft Azure and Amazon AWS by leasing access to expensive GPUs for AI applications. Experts estimate its IPO could reach $35 billion.
6) Stripe
Stripe is poised to be one of the largest IPOs of 2025. While no official date has been set, the fintech giant founded in 2010 could debut with a valuation of $70 billion.
7) OpenAI
OpenAI’s IPO is one of the most anticipated in recent years. Valued at $150 billion after a recent $6.5 billion funding round, OpenAI is among the world’s most valuable startups.
Though originally a nonprofit, OpenAI may shift to a for-profit model to facilitate a stock market debut. This move would grant access to fresh capital and corporate contracts but also introduce regulatory challenges. The company’s IPO could depend on factors like revenue generation, subscription expansion, and the growing demand for AI.
8) SpaceX
SpaceX is gearing up for what could be the most lucrative IPO in Wall Street history. Elon Musk’s aerospace company dominates the satellite industry, operating two-thirds of active global satellites through its Starlink network, which serves over 4 million customers worldwide.
Reports suggest SpaceX is in talks to sell preferred stock at $135 per share, potentially raising its valuation to $255 billion.
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Original article published on Money.it Italy 2024-12-02 16:03:10. Original title: Nel 2025 ci sarà l’Ipo più grande della storia
