The recent surge in interest in IPOs in the US market has led to significant stock price increases for new public companies. These events symbolize the expected recovery in the stock market.
IPO Market at Historic Levels
The recent wave of successful debuts includes significant stock price increases for companies like Airo Group Holdings Inc., which rose by 140%, and Circle Internet Group Inc., whose stocks surged by 168.5%. These companies raised over $50M in their offerings, with much of the interest in IPOs coming from professional and retail traders.
According to finance professor Jay Ritter from the University of Florida, "the companies that see huge day-one pops are typically younger and harder to value."
New Companies in the Market
Circle's $1.2B IPO has been one of the largest in 2025 so far, and its stocks climbed by 168.5% on the first day of trading, reflecting a revival of institutional confidence in the stablecoin sector.
Airo Group, which manufactures drones, experienced a 140% increase thanks to favorable synchronization with political events support the industry.
Even politically charged firms like Newsmax witnessed an impressive opening gain of 735% following its IPO in March.
Contemporary Challenges for IPOs
Despite successful debuts, the IPO market faces a series of challenges. Increasing political instability and trade tensions may threaten future issuances. For instance, companies like Omada Health and MNTN struggled to maintain their initial gains, experiencing stock declines after debut. "The question remains whether we return to a more chaotic environment" — noted Greg Martin from Rainmaker Securities.
The rise of interest in IPOs in the US results in significant volatility in the stock market; however, the long-term prospects of many new companies remain uncertain.
