Best upcoming IPOs in 2025 for traders to watch
For traders looking to trade IPOs (Initial Public Offerings) in 2025, it's time to start planning ahead. An IPO is when a company offers its shares to the public for the first time, allowing investors to buy a stake in the business.
This year could stand out, with several high-profile companies set to enter the public market. From fast-growing fintech startups to established tech companies, there are plenty of investment options for those looking to build their portfolio. Once the stocks go public, you can invest in them in the traditional way – or trade on their share prices with products such as CFDs. As always, it is essential to understand both the potential benefits and risks before participating.
Key takeaways
- IPOs to watch in 2025: 2025 could be a standout year for IPOs, with CoreWeave already listed and several high-profile companies, including Databricks, Stripe, and Reliance Jio, expected to go public.
- Sector highlights: Key sectors represented include fintech (Stripe, Zopa, Klarna), technology (Databricks, Discord), e-commerce (Shein), and telecommunications (Reliance Jio).
- Factors influencing valuations: IPO valuations vary widely based on growth potential, market demand, economic conditions, regulatory environment and financial stability.
Upcoming IPOs in 2025
Here are some of the most anticipated upcoming IPOs of 2025 that could be worth watching:
- Stripe: This is expected to be one of the most substantial IPOs of 2025, with a projected valuation of approximately $91.5 billion after a recent tender offer for employees and shareholders. As a key player in the financial technology sector, Stripe's IPO could present an opportunity for those interested in this rapidly growing market. However, potential investors should consider the competitive landscape and market volatility that could impact Stripe's post-IPO performance.
- Medline Industries: Medline is a big name in the medical supply chain world, owned by private equity group Blackstone, Carlyle and Hellman & Friedman. As private equity firms seek to capitalise on favorable market conditions to divest holdings, Medline is gearing up to go public in 2025 with an estimated valuation of $50 billion. With a solid track record and global reach, this IPO might catch the eye of anyone looking to invest in the healthcare supply sector.
- Chime: Chime, a leading digital bank, is reportedly preparing for an initial public offering in 2025. In December 2024, Chime had confidentially filed for an IPO, with its CEO Chris Britt expressing a year earlier, that the company was "as IPO-ready as a company can be." If Chime proceeds with an IPO in 2025, it could play a significant role in revitalising the IPO market, given its robust growth and prominence in the digital financial services sector.
- Zopa: Originally a peer-to-peer lender, Zopa has evolved into a full-fledged digital bank and is expected to go public in mid-2025. With its roots in the UK’s fintech revolution, Zopa’s IPO could attract significant interest from traders looking to diversify their portfolios with financial services companies.
- Shein: The fast-fashion retailer has long been rumored to be eyeing an IPO, but has postponed it to the second half of 2025, following the expected termination of the 'de minimis' duty-free imports rule under Trump. Initially targeting a $66 billion valuation, the company has been under pressure to halve it to around $30 billion. For traders looking to tap into the e-commerce boom, Shein could still be worth watching due to its growth potential and strong market position, yet without overlooking its potential risks.
- Databricks: Known for AI-driven data analytics, Databricks is targeting an IPO in 2025. Following its $10 billion funding round, the company’s potential valuation has risen to $62 billion. While offering opportunities in the AI and big data sectors, the risks of a rapidly evolving technology landscape should be evaluated.
- Revolut: The digital banking app, which has become a household name in fintech, is rumoured to be preparing for an IPO during late 2025 or even 2026 according to industry insiders. After gaining a restricted banking licence in the U.K, and accelerating its global reach, the company is possibly paving the way to an IPO launch with a potential valuation of around $45 billion. For those interested in the digital banking trend, Revolut’s IPO might be an interesting one to watch.
- Discord: The San Francisco gaming chat platform has initiated discussions with banks about a potential public listing, signaling a possible resurgence in the US IPO market. With a valuation of around $15 billion, Discord’s IPO could provide exposure to the tech and social media sectors.
- Klarna: The leader in the 'buy now, pay later' sector had reportedly filed for an IPO and was due to go public in 2025 with an estimated valuation ranging between $15 billion and $20 billion. However, the company halted its IPO plans following President Donald Trump’s tariffs announcement. Should Klarna proceed with a public listing in the future, it's worth noting that while fintech startups have reshaped traditional finance, the historical performance of fintech IPOs suggests a cautious approach.
- Reliance Jio: This IPO is expected to be one of the biggest in 2025 and India's largest, with an estimated valuation of around $120 billion. Reliance Jio is not just a leader in India's telecom industry; it is a key driver of digital transformation across the country. With a massive subscriber base and ambitious plans to further expand its digital services, Jio's IPO could be worth following, although investors should be mindful of the competitive pressures and regulatory dynamics within the sector.
Why do companies go public?
There are a number of reasons for a company to go public. Most of these companies are seeking to raise capital to fuel their growth, enhance their market presence, or provide liquidity to early investors and employees. For example, tech companies like Databricks and Discord want to capitalise on their rapid growth and strong market positions, while fintech players like Monzo and Revolut are eyeing public markets to expand their services and reach new customers. In addition, many private equity firms take their portfolio companies public and exit their investments as they look to take advantage of favorable market conditions. Medline and Genesys are examples of companies backed by private equity firms, planning to go public in 2025.
Understanding IPO valuations
Valuations for these IPOs vary widely and can change over time. As mentioned, Shein’s once high valuation of around $66 billion, has now dropped to $30 billion. Databricks is valued at $62 billion, while other fintech players like Monzo and Starling Bank, have valuations in the $5 billion range. These valuations are based on several factors, including growth potential, market demand, and financial performance. They can fluctuate significantly as market conditions evolve, with companies reassessing their worth as they approach their official public debuts.
Evaluating the risks and rewards of trading IPOs
IPOs offer both opportunities and risks. Newly listed companies may experience volatility, legal issues and there is no certainty of price appreciation. Market sentiment, economic conditions, and the company's performance all influence outcomes. Balancing potential returns with the possibility of losses is key to effective decision-making
| What You Get | Potential Rewards | Potential Risks |
| Growth Potential | Growth opportunities may exist, particularly in sectors like technology and fintech, which are experiencing rapid expansion. | Growth may not meet expectations, or broader economic downturns could negatively impact stock prices. |
| Market Sentiment | Positive market sentiment towards an IPO can lead to increased buying activity, which may raise the stock price. | Negative market sentiment or adverse economic news can quickly reduce the stock price. |
| Getting In Early | Purchasing shares at the time of the IPO offers early entry, potentially before significant price increases. | Limited historical data can make it challenging to assess whether the initial price reflects the company's true value. |
| Liquidity | Higher trading volumes for IPOs may improve liquidity, making it easier to buy and sell shares. | Early trading can be highly volatile, leading to unpredictable price swings and difficulty in selling at desired prices. |
| Diversification | IPOs allow you to add new companies or sectors to your portfolio, helping spread your risk. | But don't go all in! Relying too heavily on IPOs could hurt if several of them don't perform well. |
| Price Swings | Adding IPOs to a portfolio can provide diversification across new companies or sectors, spreading risk. | Overreliance on IPOs could result in losses if several of them perform poorly. |
| High-Demand Stocks | High demand for certain IPOs might cause initial stock price increases. | Stock prices can also decline quickly if market expectations are not met or unexpected events occur. |
| Regulatory and Compliance Challenges | Early investment in a company can offer potential benefits as the company grows and expands its market presence. | Companies going public may face regulatory or legal challenges that could negatively affect their stock prices. |
Key considerations for trading upcoming IPOs
- Growth potential: Opportunities exist in sectors like fintech and AI, but growth projections may not always align with reality.
- Market sentiment: IPO performance is closely tied to market conditions, which can drive prices up or down.
- Regulatory challenges: Many IPOs face potential regulatory hurdles that could impact stock prices.
- Diversification: IPOs can diversify a portfolio, but caution is needed to avoid over-concentration in newly listed companies.
Latest IPOs
CoreWeave: It’s been the biggest tech IPO in the US since 2021, with $1.5 billion raised during its initial share offering on 28 March 2025 and a $23 billion valuation. Microsoft has been CoreWeave’s biggest customer, accounting for 62% of the company’s revenue. However, just ahead of its IPO, it was reported that Microsoft had withdrawn some of its commitments to the AI cloud provider due to delivery issues, which along with AI spending concerns and CoreWeave's business model issues, increased investor skepticism. This caused CoreWeave to reduce its price target from $55 to $47 and eventually price its initial IPO at $40 a share.
Talabat: Middle East’s leading online food delivery service went public on the Dubai Financial Market in December 2024. The initial IPO raised approximately $2 billion, making it the largest global tech IPO in 2024 and the largest IPO in the GCC region that year, despite a 6.9% decline on its first trading day. This IPO highlights the robust activity in the GCC's financial markets, with regional investors showing keen interest in technology-driven services.
Identifying a successful IPO in 2025
Strong financials, a compelling growth story, experienced management, and solid market positioning are key indicators of a successful IPO. Understanding the market environment is also crucial, as IPOs tend to perform well in bullish markets with high investor confidence.
Considerations for trading on the first day
Investing in an IPO on its first day involves both risks and rewards. While some stocks may surge, others could drop below their initial offering price. Evaluating long-term potential and maintaining a balanced portfolio can help manage risk.
The impact of market sentiment
Market sentiment can significantly influence an IPO's success. Bullish markets can sometimes see IPOs performing well (but not always!), while bearish conditions can lead to underperformance. Pay attention to economic indicators and investor behaviour to gauge market sentiment and make more informed trading decisions.
An alternative route to share trading
With many companies choosing to stay private, there is increasing demand for investors to be able to access and trade shares in private companies more easily. The UK government and the London Stock Exchange have introduced the Private Intermittent Securities and Capital Exchange System (Pisces), a platform that will facilitate trades of private company shares, aiming to boost London's public listing appeal. PISCES aims to reduce the need for detailed checks in private share transactions while allowing trading without the full public company disclosure requirements. A regulatory framework has been in the making by the FCA (Financial Conduct Authority), and the proposed new rules are expected to be released soon.
London's IPO appeal expected to grow
The London Stock Exchange (LSE) is poised to become a more attractive destination for international IPOs in 2025, thanks to FTSE Russell's recent changes to its index methodology. By allowing dollar and euro-denominated shares to be included, the LSE opens its doors to companies globally. Additionally, FTSE Russell has lowered market cap requirements to be more accessible by smaller or emerging companies. These changes are expected to significantly boost the LSE's positioning in the international IPO landscape in 2025.
Making the most of IPOs with Pepperstone
Pepperstone offers an advanced suite of tools and platforms to start trading CFDs on IPOs by speculating on price movements once companies have launched their IPOs. In addition, with comprehensive market analysis, access to TradingView and educational resources, clients can stay up to date on the latest IPO trends and make informed decisions.
Final thoughts
2025 brings a variety of opportunities for traders interested in IPOs, especially in sectors like tech and fintech. Industry leaders, including executives from Nasdaq and Carlyle Group, anticipate a vibrant IPO market for the year ahead, driven by a strong economy, favorable valuations, and an interesting lineup of companies preparing to go public. As always, it's important to stay informed and approach these opportunities with a balanced view. While IPOs can offer exciting prospects for growth and diversification, they also come with their share of risks, such as market volatility and unpredictable performance.
To make informed decisions, it is important to thoroughly research upcoming IPOs, understand both the potential rewards and challenges, and closely monitor market conditions. By carefully weighing the advantages and disadvantages, navigating the IPO landscape becomes more manageable, allowing for investments that align with specific objectives and risk tolerance.
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.