This has been the best year for U.S. initial public offering activity since the last peak in 2021. N🦂ext year could be even better. 

As of late December, companies going public have raised more than $41 billion in the U.S., according to 澳洲幸运5官方开奖结果体彩网:capital markets d🌱ata provider Dealogic, above 2023’s roughly $24 billion and the $22 billion raised in 2022.

That’s still a sliver of the record $316.6 billion raised iඣn 2021, when listing candidates rushed to raise money in an era of low interest rates. But investors are looking for an IPO pickup in the year ahead.

After 2021, the IPO Market Froze

The IPO market turned decidedly chilly as the 澳洲幸运5官方开奖结果体彩网:special purpose acquisition company 🀅(SPAC) craze fizzꦏled and a wave of IPOs dis🌟appointed investors with their subsequent performance.

Electric vehicle manufacturer Rivian Automotive (RIVN), for instance, has since lost more than three-quarters of its value since going public in early 2022. IPOs in the U.S. fel🌞l 16% on thᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚeir first day of trade on average in 2022, Dealogic data show.

The Federal Reserve also began a wave of 澳洲幸运5官方开奖结果体彩网:interest-rate hikes in March 2022 to cool inflation, eventually bringing the 澳洲幸运5官方开奖结果体彩网:fed funds rate to a more than two-decade high and putting on ice many companies' plans to float shares. Higher interest rates are painful for IPOs not only because they make borrowing more expensive for fledgling firms but also increase 🐓competition for investor cash.

Start of Interest-Rate Cuts Lifts Hopes for a 2025 IP🍸O Boom

Two reasons investors are now looking a pickup in IPO activity: The Fed has been cutting interest rates since September as inflation abates, and President-elect Donald Trump’s 澳洲幸运5官方开奖结果体彩网:administration  is broadly considered good for business, whether that's because it is expected to cut taxes or 澳洲幸运5官方开奖结果体彩网:ease regulation.

“澳洲幸运5官方开奖结果体彩网:Deregulation will make it easier for earlier-stage companies to gain traction and grow in their specific business markets,” said Ross Carmel, a partner at IPO-foﷺcused  law firm Sichenzia Ross Ference Carmel.

IPOs by AI chip startup 澳洲幸运5官方开奖结果体彩网:Cerebras Systems and Swedish payments processor Klarna,🌱 seen as likely next year, could test investor appetite for IPOs.

“If they trade well post-IPO, I expect other mature companies will follow suit and 澳洲幸运5官方开奖结果体彩网:go public in 2025,” Carmel said, noting that listings by cryptocurrency-related companies are also likely to enjoy increased investor appetite under the new 澳洲幸运5官方开奖结果体彩网:crypto-friendly White House.

The caveat: The private markets have surged this year and there are plenty of hot listing candidates that are easily raising money elsewhere: Elon Musk's rocket company SpaceX and 澳洲幸运5官方开奖结果体彩网:Artificial intelligence (AI) giant OpenAI are just two examples.

Reddit, Astera Surged This Year But Weren't in Top 5

Here are 澳洲幸运5官方开奖结果体彩网:this year’s top five IPOs by funds raised, according to Dealogic. Success stories like 澳洲幸运5官方开奖结果体彩网:social media company Reddit (RDDT), whose shares have latelyღ touched record highs, aren't in✤ the top five.

1. Lineage (LINE)

The world's largest operator of cold-storage warehouses, raised $5.10 billion in its U.S. IPO in July, in the biggest IPO in the U.S. since British chipmaker Arm Holdings' (ARM) $5.23 billion float in September 2023 and, according to Dealogic, the largest listing by an American firm since Rivian's $13.72 billion IPO in November 2021.

2. Viking Holdings (VIK)

The cruise company raised $1.77 billion from its IPO in May. 

3. StandardAero (SARO)

The aircraft maintenance provider backed by private equity firm Carlyle went public in October and raised $1.66 billion.

4. Amer Sports (AS)

The Finnish sporting equipment and apparel company whose products include Wilson tennis rackets, raised $1.57 billion from its January IPO.

5. UL Solutions (ULS)

The 澳洲幸运5官方开奖结果体彩网:applied safety science company 澳洲幸运5官方开奖结果体彩网:went public in April and raised $1.09 billion.