‘Mega tech IPOs’ could finally come in 2025, Nasdaq president says

With the hype surrounding artificial intelligence continuing to grow, the coming year holds great potential for tech companies entering the public market.

According to Nasdaq president Nelson Griggs, the energy in Silicon Valley is palpable, with companies securing funding at an impressive pace. He predicts that 2025 will witness the highly anticipated mega tech initial public offerings (IPOs) that have been making headlines.

In recent years, the IPO market has been relatively quiet due to factors such as high interest rates, rising inflation, and restricted capital flows caused by the COVID-19 pandemic. However, there are early indications of a revival.

In the first quarter of 2024, the number of companies going public matched that of the previous year, but the amount of capital they were able to raise was three times higher.
The tech sector has seen two major IPOs this year: Astera Labs, an AI startup, and Reddit, a popular social media platform. Together, these IPOs raised $1.5 billion. Reddit’s AI strategy also caught the attention of the FTC. This could be the start of a continuing trend, as Colin Stewart, the global head of technology equity capital markets at Morgan Stanley, expects 10 to 15 more tech companies to go public by the end of the year. Additionally, Stewart predicts that 2025 will be an even better year for the markets. Last September, British chip maker Arm’s successful IPO on the Nasdaq further fueled interest in tech companies going public. Arm’s stock price has since risen, reaching a market capitalization of $166 billion.
During a panel discussion on Thursday, Michal Katz, the head of investment and corporate banking at Mizuho Americas, highlighted the significant number of unicorns that have emerged in the past five years. These privately owned startups, valued at over $1 billion, have yet to go public and are in need of a solution. Katz emphasized the need for alternative strategies such as mergers, acquisitions, and minority stakes until markets like the Nasdaq become more accessible to these companies. She stressed the importance of satisfying investor demand for returns on their investments. Additionally, the Nasdaq, which is heavily focused on technology stocks, has outperformed the S&P 500 with a 19% return this year. Stay updated with the latest news on Facebook, Twitter, and Instagram.