IPO Market Heats Up: Four Major Listings Expected in May as Volatility Eases

IPO Pipeline Builds as Market Conditions Improve

The US initial public offering market is coming back to life after a sluggish start to 2025. Investment bankers are pointing to improving window conditions — reduced equity market volatility, recovering investor sentiment, and strong institutional demand — as they prepare a meaningful pipeline of listings for May and June.

The Most Anticipated IPOs of 2025

Klarna: The Swedish buy-now-pay-later giant is targeting a valuation of $15 billion — significantly below its 2021 peak of $46 billion but reflecting a more realistic assessment of fintech valuations in a higher rate environment. Klarna returned to profitability in 2024 and is growing revenue at a 25% clip.

StubHub: The ticketing marketplace is reportedly targeting a $16.5 billion valuation. The live event economy has been remarkably resilient post-pandemic, and StubHub's marketplace model generates substantial cash flow.

Chime: The digital banking app serves 22 million customers and is targeting a valuation around $25 billion. Its no-fee model and early direct deposit feature have driven strong user growth among younger consumers.

Cerebras Systems: The AI chip startup is targeting up to $9 billion in valuation. Cerebras makes wafer-scale processors that compete with Nvidia in AI training workloads.

What's Driving the Revival

IPO activity correlates strongly with equity market performance and volatility. The VIX (fear gauge) has fallen from above 25 in March to below 17, creating a more favorable window. Additionally, PE and VC firms that have been holding portfolio companies through the rate cycle are under pressure to generate liquidity for their limited partners.

Investor Considerations

Post-2021 hangover means investors are scrutinizing unit economics much more carefully. Profitability (or a clear path to it) has replaced growth-at-any-cost as the primary criterion. Companies that fit that description — and price their IPOs at reasonable valuations — are likely to find strong institutional demand.