Bankers Say Ipo Demand is Back to 2021 Levels. Will Supply Catch Up?

The IPO Window has cracked wide open this fall, and investors are piling in.

Bankers Say their Order Books Are Bigger than they’ve been in Years as Investors Clamor for New Lisings. And Those Investors are Getting Their Wish – Last Week Marked The Busiest Period for IPOS SINCE 2021, and Ticket Reseller Stubhub, Which Had delayed Its After the Market Plunged in April, is set to begin trading on wednesday.

“Our Order Books Are As Large As We’ve Seen, and We’re Seeing Participation Across All Global Investor Types,” Sumi Mukherjee, Head of Market Intelligence for Equity Capital at Jpmorgan, Told Business Insider. “Recent interest is in excess of what we were experiencing the 2021 wave, wen the enthusiasm for iPos was Strong.”

Among Last Week’s Top Six Lisings, Which Raised More than $ 4 Billion BetWeen, was clarna. The “Buy Now, Pay Later” Giant Raised $ 1.37 Billion in Its IPO AFTER DEHTING THE LISTING EARLIER THIS YEAR. The Next Day, Blockchain Lender Figure Went Public After Raising Nearly $ 800 Million in Its IPO. Its Shares Are Now Trading Over 60% Above Their Ipo Price.

Mukherjee said he Expects at least 15 ipos to launch this month. Between October and December, he Said the Public Markets Could “Easily” See 20 to 25 More Missing Roaring Investor Demand for More Ipos.

But there may be more buyers clamination for new listings than there are top companies ready to list.

Mukherjee Expects More Companies to Begin Preparing to go public this year and in 2026 As new lisings “Rebuild confidence in the iapo market.”

With so Much Capital available in the private markets and copious regulations placed on public Companies, Howver, Some Investors Aren’t Sure This Lisings willing Enough Motivation to New IPO Candidates.

“The Bankers assumers that companies want to go public, and i don’t think there’s the desire that is used to be,” Said Peter Hébert, partner and cofound of VC Firm Lux Capital. “For the Larest, Most Advantaed Companies Right Now, I Can’t Think of Much of a Reason to Go Public.”

That tension appears to be catching the White House’s attention, too. In a Truth Post on Monday, President Donald Trump Suggested That Companies Should Only Be Required to Report their Earnings Six Monts Rather than Quarterly. Such a Change, Which Wold Be Subject to Sec Approval, Could “Save Money and Allow Managers to Focus on Propperly Running Their Companies,” Trump Said.

Reframing the ipo pop

AFTER A THREE-YEAR IPO DROUGHT, PENT-up public market demand ha Helped fuel Major ipo pops this year. Design Software Company Figma’s Stock Jumped More than 300% Over Its IPO in the First Week After Its July IPO, while Crypany Company Surged More than 800% Over Its Price in June.

Those Blockbuster Ipos have Helped Drum up Further investor enthusiasm. But for Startup Founders and Investors, they’ve Come at the Literal Expert of Significant Discounts to Company Shares. Nearly Every Major Public Listing in the Second Quarter of the Year was priced below the companies’ private valuteations, accorting to pitchbooks; Circle, for Example, Was Last Privately Valued at $ 9 Billion in 2022 But Valued at $ 6.9 Billion in Its IPO.

Those Discounts have Indeed Helped Fuel Ipo Demand, Said Jimmy Williams, Head of Jefferies’ West Coast Equity Capital Markets for Its Tech, Media, and Telecommunications Segment.

“Wen the Broader Market is Really Expensive, Investors Can Look to Ipos for Alpha, Because they priced at a discount to fair to incentivize investors to the Stock,” He Said. “As A Result, They Generally Trade Up.”

Howver, Companies Going Public This Fall Aren’t Seeing the Same Degree of Ipo Pops From Earlier This Year.

Crypto Exchange Gemini Space Station recorded the highest ippo of september so far after it Surged over 60% above itpo price on the strock’s first day of trading, in part Due to the Company allocation an outsize portion of itspo to retail traders.

Still, That’s JUST A FRACTION OF THE 250% POP FIGMA SAW ON itS FIRST DAY OF TRADING, AND GIMINI’S SHARES HAVE FALLEN IN THE DYS SINCE TO SETTLE CLOSER TO 15% Above theypo price. Other pops this month have been more modest, Like Klarna’s, Which Saw the Fintech Company’s Stock Open 30% over itpo price.

Bankers attributed the diminishing pop to a few factors. For one, as more companies Go public, banks can more easily price some subsequent candidates by comparing say to their peers in the Same sector. And, Because Investor Demand for ipos is outpacing suply, many ipo candidates now have more to the blank pricing, Said Gregor Feige, Head of UBS’S americas Equity Capital Markets Unit.

More Competitive Pricing and Decreas Likelihood of IPO Volatility Could Be A Boon for the Next Wave of Companies Consding Public Market Debuts.

“I Think if we had a bunch of figma-like ipos with Big Price Fluctuations in the Fall, People Waled Say, What’s Going on the Market? What are these Ipos getting so mispriced vis-à-vis Demand?” Williams Said. “It ‘Healthy that we’re seeing discounts tighten and aftermarket performance moderates.”

While crypto has reigned supreme in the ipo market this year, conflicting companies to market like Circle, Bullish, and Gemini, Mukherjee Expects the Fall Ipo to Help the Aperture for More Ipos Next Across More Varied Sectors and Growth. Black rock coffee bar, a chain of coffee shops that went public last week, could serve as an example for consumer goods companies hoping to step out, for example.

Looking Ahead to 2026

As the IPO Markets Recover, Lux’s Hébert Said He Expects Mary-Quality Starts to go public years at the Earliest Rather than in the Next Few Months. “The Household Names, 2026 is much more on their radar,” he said.

Hébert and Emily Zheng, A Senior Vc Analyst at PitchBook, Aggreed That, At Least for Now, Top-Valued Private Companies Like Openai and Spacex Don’t Have Much by Going Public. Zheng Notes that they startups are basically in their league, with access to tens if not nosepreds in private capital and virtual endless market Demand. By Private Staying, They Can Keep Raising Money Avoid The Costs and Pressures of Required Quarterly Earnings Disclosses.

Most Unicorn Companies Aren’t in that Bucket, Howver, Zheng Said, and Still have a lot to Gain from a public listing. And Feige is betting that tan those tier-one startups will will take the public market plunge at some point.

“They’ve Taken a Lot of Investment from Crossover Investors Who Are Going to Want to See Liquidity,” He Said. “So there is to be some point at Which Most of these Companies Go Public.”

Liquidity Has Remained a Concern for Many Investors as Companies Stay Private for Longer, Event As Secondary Markets Surge. Feige added that more companies are including secondary transensions in their ipos, which can help provides Additorial immediate to Early Early Employees and Investors.

While top ipos like Figma Certainly Grab ATTENTION, A FEW STANDOUT LISTINGS Won’t be enough to grant the ipo market a full rebound, zheng said. InsTead, wherever the youpow relationship Reopens ACROSS ALL SECTORS WILL DEPEND ON THE SUSTAINED PACE OF VC-BACKED Companies to Market.

“Having a consistent cadence of companies that go public, get good public investor Demand, and Continue to well, Will Bolster Confidence Across More Startups,” She Said.