IPO Market Reawakens in 2025 Despite Risks of Tariffs and Geopolitical Strife

Last updated Jun 23, 2025

The Revival of the IPO Market: A Closer Look

The IPO market, dormant for over three years, has been reinvigorated by the success of recent issues such as Circle and CoreWeave. Despite anticipation for a surge of high-profile deals in the coming fall, threats like tariffs and geopolitical instability could potentially disrupt this resurgence.

The 2025 IPO Boom: A Remarkable Shift

With more companies going public this year than any since 2021, 2025 has certainly marked a turning point for IPOs. As of June 18, 95 companies have listed on U.S. exchanges, raising a striking $15.6 billion, according to Dealogic. This is a 30% increase from last year and almost twice the number of companies that listed in 2022 and 2023.

However, while the current IPO climate is favourable, it still falls short of the 2021 frenzy when unprofitable companies flocked to go public. As Matt Kennedy from Renaissance Capital, a provider of pre-IPO research, puts it, “We are not back to 2021 levels where everyone was piling in.”

Promising Prospects: The Nasdaq Listing

With about 200 companies filing to list on the Nasdaq, there is a 13% increase from last year. The future seems promising as many companies prepare for their public market debuts. This year’s IPOs have seen several winners, most notably crypto firm Circle, whose shares rocketed 168% on its June 5th debut, and AI infrastructure company CoreWeave, which has seen a 359% increase since its March debut.

Future IPO Market Projections

The second half of 2025 has high expectations for the IPO market. However, macroeconomic issues such as a potential war with Iran and tariffs could upset this year’s market. Market volatility can deter investors from participating in new issues. In addition, the ongoing tariff policy announced by President Trump in April could continue to cause market instability and economic uncertainty, potentially slowing the IPO market again.

Aftermarket Performance: An Ongoing Challenge

Another crucial factor for IPOs is the aftermarket performance. Some companies have been under pressure, such as Chime, which rose 37% in its debut but has seen a fall in several recent trading sessions. If Chime were to drop below its $27 offer price, this could signal a decline in investor sentiment and potentially impact similar companies.

Moreover, the so-called lockup periods that recently public companies must adhere to can also affect the stock performance. When the lockup periods expire, insiders are free to sell their shares, which can cause the shares to drop or become more volatile. It remains to be seen how companies like Circle, Chime, and CoreWeave will fare after their respective lockups end.