AI and cryptocurrency concept stocks drive the warming of the U.S. IPO market, with a concentrated issuance wave expected this autumn

This summer, the U.S. IPO market has performed exceptionally well, with several stocks seeing triple-digit gains on their first day. This boom is driving more cryptocurrency and AI companies to accelerate their IPO processes in preparation for the listing wave after the Labor Day in September.

According to Keith Canton, co-head of U.S. Equity Capital Markets at JP Morgan, dozens of companies may go public in the U.S. by the end of this year, with total financing potentially exceeding $15 billion, bringing the total IPO financing for the year (excluding SPACs) close to $40 billion. In comparison, last year, the IPO financing scale on U.S. exchanges was $27.5 billion, excluding SPACs, REITs, and closed-end funds.

Cryptocurrency companies, including Gemini Space Station Inc. led by billionaires Winklevoss brothers and blockchain credit company Figure Technology Solutions Inc., are accelerating the submission of listing application documents to regulators. At the same time, many candidates considering going public this fall are emphasizing their AI applications, such as payment company Klarna Group Plc, which noted that efficiency improvements brought by AI allowed the company to stop hiring in 2024, resulting in a 22% reduction in employee numbers that year.

Successful IPO cases from tech companies like Figma Inc. and stablecoin issuer Circle Internet Group Inc. saw first-day gains of over 100%, and this euphoric performance has alleviated the hesitation previously felt by potential listing companies due to challenges such as tariff disputes.

Scarcity Value Drives Impressive IPO Performance

Nick Williams, head of U.S. Equity Capital Markets at Deutsche Bank, analyzed that scarcity value is a key factor driving explosive post-IPO stock performance in certain sectors. In cryptocurrency-related listings, the channels for stock investors to gain exposure to such assets are limited, coupled with significant retail demand for the theme, which is the main reason for the substantial rise in stock prices.

Williams pointed out, “The real skill is to see how much long-term fundamental capital you can maintain on the shareholder register.”

John Kolz, head of Global Equity Capital Markets at Barclays, expects a very busy fall, with a significant increase in transaction volume, including the resumption of paused listing processes, acceleration of existing application processes, and an increase in "dual-track" considerations.

The fall IPO window typically comes with high expectations, and the recent market momentum is particularly attractive to several well-known companies. Ticket trading platform StubHub Holdings Inc. updated its application documents last week to prepare for the resumption of its IPO plan after pausing it in April In addition, if the Federal Reserve resumes interest rate cuts in September, this may also benefit those heavily indebted private equity-backed IPO candidates.

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