The initial public offering (IPO) market started to pick up the pace late in the first quarter, but concerns about the economic impact of the Trump administration's tariffs have some companies pressing the pause button amid broader market uncertainty.
According to Renaissance Capital, a leading provider of pre-IPO research and IPO-focused ETFs, there have been 56 IPOs priced so far in 2025, through April 4, up 70% over Q1 2024.
Of those offerings, a total of $9.4 billion in proceeds was raised, a 19% increase over the year-ago period.
CoreWeave's IPO fizzles
BofA Securities analysts say artificial intelligence (AI) remains one of the hottest spaces for market participants. "Software to cleanse, manage and secure data coupled with enablers of AI models for training and applications (inference) appear to be drawing the most investor interest," the group writes.
But market uncertainty is trumping AI enthusiasm at the moment, as evidenced by New Jersey-based AI infrastructure firm CoreWeave's IPO. The company began trading on the Nasdaq late last month in a public debut that left much to be desired.
While the tech firm raised $1.5 billion in its initial public offering, making it one of the biggest IPOs in recent memory, this was much lower than originally expected.
CRWV stock did manage a post-IPO pop but has been volatile along with the broader market in early April.
Upcoming IPOs
More companies are testing the waters, making now the best time to explore the most anticipated upcoming IPOs.
For those looking to gain exposure to these new stocks, it's imperative to have an understanding of what an IPO is before jumping in.
Having covered the most promising upcoming IPOs for Kiplinger for several years, I've crafted this latest list to spotlight larger, well-established companies that are sure to gain the attention of both Wall Street and Main Street.
Data is as of April 4. Where possible, we have provided reported expectations for timelines and/or valuations for the upcoming IPOs.
Company | Industry | Expected IPO timeline |
|---|---|---|
Klarna | E-commerce | 2025 |
Chime | Fintech | 2025 |
StubHub | Entertainment | 2025 |
MNTN | Digital advertising | 2025 |
Solera | Automotive software | 2025 |
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Klarna
In 2005, Sebastian Siemiatkowski, Niklas Adalberth and Victor Jacobsson co-founded Klarna, which is based in Sweden. They wanted to disrupt the online payments market, which was complicated and expensive. Their concept was to allow for "buy now, pay later" spending.
Generating interest from investors was a big challenge, but the co-founders weren't deterred. They were convinced they were pursuing a massive business opportunity.
Klarna would be a catalyst for fueling e-commerce, providing guarantees to buyers and allowing them to try something before making a purchase. This was critical for engendering trust.
Today, Klarna is a massive business, with 93 million active consumers and 675,000 merchants. At the end of 2024, it had $105 billion in gross merchandise volume, $2.8 billion in revenue and $21 million in net profit.
Klarna has also invested significantly in generative AI to streamline its operations, partnering with OpenAI to build a sophisticated chatbot for customer support.
During its first month of implementation, Klarna's chatbot handled the work of about 700 full-time agents — with roughly the same level of customer satisfaction and improved accuracy. Klarna forecast its chatbot will lead to an improvement of $40 million in profits.
In March, Klarna filed its IPO prospectus, signaling its intention to trade on the New York Stock Exchange under the ticker symbol "KLAR."
However, due to the tariff-inspired stock market volatility, Klarna has reportedly paused its IPO plans.
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Chime
Back In 2012, Chris Britt and Ryan King aimed to disrupt the traditional banking industry. It was too expensive, and it failed to serve younger and lower-income people.
Britt and King co-founded Chime, a mobile-first banking app. Their goal was to reduce and even eliminate fees for things such as minimum balances and overdrafts.
Chime also offered competitive interest rates on deposit balances as well as credit cards, and it introduced a feature to allow customers to get paid between paydays.
The formula has paid off. Chime has become the largest digital-only bank, now generating about $1.5 billion in revenue with about 7 million members, according to Forbes (paywall).
Chime is also leveraging its platform into other market opportunities, illustrated by its recent acquisition of Salt Labs. Salt Labs develops enterprise software to allow companies to provide rewards programs to employees. This will open a new revenue stream for the company and establish more distribution channels for the Chime app.
Chime has been investing heavily in AI, as well. It recently entered a partnership with FairPlay, a platform for risk management.
About a year ago, Britt said his company was "as IPO-ready as a company can be." It looks as if an offering for one of the hottest upcoming IPOs will happen next year, with a valuation of about $8 billion (paywall).
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StubHub
At the peak of the dot-com bubble in 2000, Eric Baker co-founded the ticket resale platform StubHub. The business was controversial at the time, as it was widely construed simply as scalping. Yet, StubHub would gain lots of traction.
A major step for management was the formation of partnerships with professional baseball, basketball and football teams. Baker left StubHub a few years later due to disagreements with his co-founder.
In 2007, eBay (EBAY) bought StubHub for $300 million. Baker was gone, but his involvement with StubHub never really ended. He launched Viagogo Entertainment, a ticketing firm focused on the European market. In 2020, Viagogo bought StubHub from eBay for $4.05 billion.
The next step? Baker plans to take StubHub public. The company filed its paperwork on March 21, with plans to trade on the New York Stock Exchange under the ticker symbol "STUB.'
According to its filing, StubHub has operations in more than 90 countries and sells more than 40 million tickets annually. In 2024, it had $8.7 billion in gross merchandise sales, up 27% over 2023.
Similar to Klarna, StubHub is delaying its IPO due to market volatility.
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MNTN
Actor Ryan Reynolds spent a decade producing the Deadpool film franchise. Much of the franchise's success is traced to the use of guerilla marketing techniques such as leaking footage of scenes.
These efforts would form the basis of a startup, Maximum Effort, that would quickly turn into a highly successful marketing agency. The company developed campaigns for firms such as Mint Mobile and Aviation Gin, both of which Reynolds would have substantial ownership stakes in.
In the summer of 2021, Reynolds sold Maximum Effort to MNTN, a fast-growing connected TV advertising platform. He also became the company's chief creative officer.
Meanwhile, MNTN raised $119 million in a Series D financing led by BlackRock and Fidelity Management and Research Company.
MNTN operates a self-service platform to allow brands to create, target and measure television advertising campaigns. It also has various AI capabilities for targeting and editing videos.
Growth prospects for connected TV certainly look bright. About 88% of U.S. households have at least one internet-enabled TV system.
This means there will be growing demand for platforms such as MNTN’s. For example, the spending on connected TV advertising is expected to go from $24.6 billion in 2023 to $42.4 billion by 2027.
To capitalize on this, MNTN is gearing up to be one of the hottest upcoming IPOs in 2025. The company submitted its S-1 filing with the SEC in late February, with shares expected to trade on the New York Stock Exchange under the ticker symbol "MNTN."
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Solera
In early 2005, business executive Tony Aquila founded Solera to develop software for risk management of the automotive industry. It didn't take him long to gain the interest of investors. A year later, he announced a $100 million funding round from GTCR, a private equity firm.
At the heart of the strategy were aggressive acquisitions, notably, Solera's purchase of the Claims Services Group from ADP for $975 million.
By 2007, Solera had launched an IPO, providing more resources for management's dealmaking. In 2015, Solera went private in a $6.5 billion transaction.
Fast-forward to today: Solera has completed more than 50 acquisitions and built an extensive platform for the purchase, underwriting and claims-processing for insurance, as well as the management of repairs, services, maintenance, fleet operations and valuations.
Solera has also established critical partnerships with 20 primary property and casualty insurance carriers, 130,000 repair shops and nine of the top 10 U.S. dealership groups.
The company's vast datasets create a key competitive advantage for Solera, enabling the construction of sophisticated AI models for improving claims management as well as vehicle repairs.
As for the financials, Solera generates hefty cash flow. For fiscal 2024, that figure was $1 billion on sales of $2.4 billion.
An IPO is in the works, with a deal likely to happen in 2025.
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Are IPOs a good investment?
IPOs can be a great way to invest in early-stage growth companies, and gains can potentially be massive.
Then again, the risks can be substantial. "Market history is littered with examples of 'hot' IPOs that have gone on to become market duds," said Ed Ciancarelli, senior portfolio manager at Focus Partners.
"Lyft, Inc (LYFT) went public at $72 on March of 2019 after pricing above the expected range of $62 to $68 per share," Ciancarelli notes. "LYFT closed the first day of trading at $78 and has not seen that level since. Such broken IPOs become the victim of an overly exuberant market and unattainable expectations."
An IPO should be considered a higher risk category for your portfolio. For example, it might be best to allocate no more than 5% to 10% in these types of investments.
Before investing in an IPO, you might want to wait until the excitement subsides.
"Be patient and wait for the stock price to have its inevitable dip prior to investing," suggests Jeff McClean, CEO at Solidarity Wealth. "Unless you are one of the lucky few who have access to pre-IPO stock at reasonable valuations, patience is the best course."
Moreover, it's a good idea to read the S-1, a regulatory filing that includes important information about the company that is planning to go public. Make sure to focus on the prospectus summary, risk factors and the letter from the founders.
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