Charles Esther
The IPO of Peter Thiel-backed cryptocurrency exchange Bullish this week has reignited enthusiasm for tech listings. Shares more than doubled at market open before closing up 84%, reinforcing investor confidence in new technology offerings.
Recent Big Tech IPO Pops
Before Bullish, Figma more than tripled in July’s NYSE debut, while crypto firm Circle surged 168% on its first day in June. Other notable performances include Chime (+37%) and eToro (+29%).
IPO Market Reopens After Years of Drought
For three years, inflation, high interest rates, and market volatility kept IPO activity minimal. Now, with the Nasdaq up over 40% from April lows and investor demand surging, more tech companies are preparing to go public.
High-Profile Listings Ahead
Nasdaq CEO Adena Friedman confirmed a “very healthy list” of companies aiming to IPO before the holiday season. NYSE President Lynn Martin said Figma’s demand could “open the floodgates” for future offerings.
Regulatory Shifts Under New SEC Leadership
New SEC Chairman Paul Atkins aims to “make IPOs great again” by reducing disclosure complexity and litigation risk. Friedman said their early discussions have focused on making public markets more attractive for companies.
Concerns Over Pricing Practices
Venture capitalist Bill Gurley reignited the debate over underpriced IPOs, arguing first-day pops benefit Wall Street clients more than the companies themselves. He advocates for direct listings to better match supply with demand.
Small Floats Driving Big Gains
Advisors note many IPOs release only a small percentage of shares—Figma sold about 7%—creating scarcity that fuels price spikes. Circle is already offering more shares in a secondary sale, and CoreWeave executed block trades after a 150% post-IPO gain.
Market Risks and Overheating Warnings
IPO expert Lise Buyer warns that the gap between institutional pricing and retail investor demand is at levels not seen since the dot-com era. While today’s companies have stronger fundamentals, the sustainability of such pops remains uncertain.
Comparison to Historical Market Surges
Buyer likened the current IPO environment to the post-Prohibition era, where pent-up demand leads to excess. She cautioned that “drinking to excess in the IPO market” could bring instability.
Momentum Builds Despite Caution
Despite warnings, market momentum remains strong. With dozens of tech unicorns valued above $10 billion and updating prospectuses, the stage is set for a busy second half of the year in public markets.
