(Bloomberg) — Companies are rushing to take advantage of recent market enthusiasm for new US listings despite September’s reputation as a tough month for stocks.
Five firms are now on deck to price their initial public offerings next week including digital payments firm Klarna Group Plc as well as Cameron and Tyler Winklevoss’ crypto exchange Gemini Space Station Inc. If all the IPOs price at the top of their marketed ranges to raise more than $3 billion in aggregate, next week would rank as this year’s busiest in the US in terms of deal volume, according to data compiled by Bloomberg.
September is often a prime opportunity to bring IPOs to market as investors return to their desks after time off and companies try to go public before calendar disruptions in November and December. It’s also a make-or-break period for the annual bonus prospects of equity capital markets bankers.
“Post-Labor Day is always a window that the banks and companies shoot for because it is after the summer holidays and the market is back in full force,” said David Erickson, an adjunct associate professor of business at Columbia Business School and a former co-head of global equity capital markets at Barclays Plc.
While last September lacked high-profile debuts, September 2023 highlighted the attraction of this window as chip designer Arm Holdings Plc priced a $5.2 billion US IPO that began marketing right after Labor Day.
The haul will likely top the week beginning July 21, in which IPOs from companies such as consumer shopping behavior data firm NIQ Global Intelligence Plc and insurance exchange Accelerant Holdings raised $2.26 billion from investors.
Next week could be even bigger if more companies opt to move ahead with their IPOs in the next day or two. Another candidate is public transport scheduling software firm Via Transportation Inc., which filed publicly on Aug. 15 and could begin marketing as early as this week.
Shares of Figma Inc., Circle Internet Group Inc., CoreWeave Inc. and Karman Holdings Inc. doubling since their 2025 debuts have left investors salivating at the prospect of more outsized performances and willing to look past any broader market headwinds.
Historically, September has been the worst-performing month for stocks over the past decade, showing an average loss of 2%, according to Ulrike Hoffmann-Burchardi, chief investment officer Americas, at UBS Global Wealth Management.
But with strong corporate earnings momentum, expectations that the Federal Reserve will cut rates mid-month and excitement about trends such as artificial intelligence, investors should not fear this September, Hoffmann-Burchardi wrote in a report on Tuesday.
It also helps that popular themes such as cryptocurrency and fintech generally and beneficiaries of heavy investment in AI dominate the deal flow.
“September is shaping up to be one of the most active stretches of the year with a healthy balance of technology-driven innovation and consumer-facing stories,” said Jeff Zell, the senior research analyst at IPO Boutique. “If market conditions hold, the IPO market appears well positioned to finish 2025 on a strong note.”
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