Initial public offerings in the U.S. are expected to rise in the first half of 2025, according to BMO Capital Markets.
Co-head of global equity capital markets at BMO, Eric Benedict, predicted that, with at least a 32% rise from 2024 levels, revenues from U.S. IPOs might reach between $40 billion and $50 billion next year. He said the forecast number is reflective of the biggest revenue increase since 2021.
Benedict pointed out that even with this expansion, the market would still be split, and only the most robust businesses would be able to go public.
While corporations raising between $100 million and $500 million saw returns climb by 17%, 18 companies raising above $500 million on U.S. markets witnessed an average share price gain of 38%.
Benedict said that larger IPOs, which usually have more difficulties because of their larger fundraising requirements, have shown strong success this year.
Head of investment banking at BMO Warren Estey said that growing interest in IPOs results from lowered Federal Reserve interest rate expectations. Estey pointed to markets progressively reverting to ten-year norms in several different fields.
