After a prolonged period of inactivity, the Initial Public Offering (IPO) market may finally be positioning itself for a rebound in 2025. The past few years have seen historically low activity in public markets, leaving companies and investors eagerly awaiting signs of revival. Early activity this year has sparked cautious optimism, with industry experts, including Nasdaq President Nelson Griggs, predicting that the market pendulum may be swinging back in favor of public offerings.

A key factor driving this optimism is the substantial “pipeline” of companies preparing to make their public debut. Griggs highlights that three consecutive years of subdued IPO activity have created pent-up demand, especially for companies seeking long-term, sustained liquidity. According to Griggs, while private fundraising has offered temporary alternatives, the public market remains the ultimate avenue for companies with ambitious growth goals.

The first signs of this awakening have already taken shape. As of January 2025, more than a dozen companies have launched IPOs, although the reception has been mixed. Among the most prominent is Twin Peaks, a spinoff of Fat Brands that debuted on January 30. Its IPO serves as a strategic maneuver to address the parent company’s financial challenges. Despite its anticipation, investor enthusiasm for early entrants has been lukewarm, underscoring continued apprehension in the market and the challenges of maneuvering a return to public offerings.

Panera Brands, another high-profile name, has spent years delaying its IPO due to unfavorable conditions. It remains undecided about the timing of its public launch, reflecting broader uncertainties facing companies contemplating this transition. Nevertheless, experts suggest that while the first half of 2025 may be uneven, the latter half could see healthier momentum and stronger participation in public markets.

Private markets, meanwhile, continue to offer innovative alternatives for companies seeking capital without going public. Market leader OpenAI is a prime example, reportedly in talks to raise $40 billion at a valuation of $340 billion. Numbers of this magnitude illustrate how private funding avenues have grown increasingly sophisticated. Yet, as Griggs points out, private capital can only achieve so much. “Deep, sustained liquidity can only be achieved by going public,” he asserts, highlighting the lasting advantages of public market access for companies looking to scale and build resilience.

Recent market trends further build the case for cautious optimism. Indicators such as improving yields and compressed valuation discounts suggest public market conditions could become more favorable throughout the year. Companies now face the decision of whether to remain privately funded or navigate the complexities of an IPO. Each route comes with its risks, but the potential for a higher volume of IPOs presents fresh opportunities for retail and institutional investors alike, enabling them to support the growth of innovative, high-potential firms.

Nelson Griggs and other optimists are convinced that 2025 represents the beginning of a new chapter for public markets. While there are promising signs, much depends on the economic and geopolitical landscape that shapes investor behavior in the months ahead. Whether this year becomes the turning point remains an open question, but one thing is clear: the IPO market’s trajectory in 2025 promises to be as intriguing as it is consequential.