This article first appeared on GuruFocus.
Klarna Group Plc (NYSE:KLAR) and Netskope Inc. (NASDAQ:NTSK) have pushed the US IPO market into its most active stretch since late 2021. Their debuts helped September listings raise $7.6 billion, excluding blank-check firms, according to Bloomberg data. That momentum comes with a weighted-average return of 17% for newly public companies, though losses in Stubhub Holdings Inc. and Gemini Space Station Inc. have pulled down the overall picture. Bankers suggest this divergence is healthy, with investors forcing each issuer to prove its valuation story rather than rewarding all offerings equally.
The broader environment has provided an assist. Equity benchmarks are pressing to record levels while volatility signals remain calm, helping IPO proceeds for 2025 reach $32 billion. That figure has already surpassed the total raised in 2024 and sits close to the pre-pandemic average pace of $35.3 billion for the same period. Bankers point to pent-up supply finally coming through, as companies like Klarna and StubHub waited until investors looked past the early disruptions tied to the Trump Administration’s tariff measures. Goldman Sachs’ Will Connolly noted most September IPOs priced in or above their ranges and have since traded at or above offer levels, which he sees as evidence of market health.
Looking forward, the pipeline could stay busy. On Friday, four companies filed for potential listings, and JPMorgan’s Keith Canton projected at least 15 more IPOs raising over $10 billion before year-end if conditions remain supportive. The message from the market is discipline: investors are enthusiastic about the asset class but selective on execution. As Connolly put it, after a series of twists, the market appears to be trending in the right direction, laying a foundation for 2026 activity.