Upcoming IPOs in 2025
The state of IPOs in 2025
After a period of recovery, the IPO market is heating up in 2025. Following a significant decline in 2022 due to global economic challenges like high inflation and rising interest rates, 2023 saw a measured rebound in activity. This trend continued into 2024, resulting in an increase in IPO activity, with proceeds in the US alone topping $41 billion, a significant rise from $24 billion the previous year.
One notable success story of 2024 was Reddit's IPO. The social media platform's stock surged nearly 400% since its March debut, generating attention, particularly from tech companies looking to leverage Reddit's data. This could pave the way for an even stronger 2025, with IPOs from industry giants like Klarna, Databricks, and Revolut leading the way.
Interestingly, this wave of IPOs follows a trend where companies delay public listings in favour of private funding. Over the past three years, companies like Stripe, Databricks, and Klarna have raised billions of dollars in private investment rounds and secondary share sales. This strategy allows them to provide liquidity to employees and early investors while avoiding the pressures of the public market and optimising their timing for an eventual IPO.
To prepare for their public debuts, several companies have focused on enhancing their governance, compliance, and operational frameworks to meet the requirements of public markets. Strategic timing is also crucial, with firms carefully aligning their IPOs with favourable market conditions and frequently exploring dual listings or global exchanges like Nasdaq to access larger pools of capital.
BrewDog
BrewDog, the Scottish craft beer giant founded in 2007, is considering an IPO in 2025, likely in London, with a projected valuation of up to £1.8-2 billion ($2.3-2.5 billion), a significant jump from its £213 million valuation in 2017. While global expansion across 15 countries has driven revenue to £355 million, the company faced doubled pre-tax losses of £59.2 million in 2023 due to rising costs. James Arrow, the new CEO, is now concentrating on restoring profitability and drawing in investors. Though 2025 market conditions are likely to improve, a successful IPO will still require overcoming these financial hurdles and navigating market volatility. The IPO will also test BrewDog's ability to balance its "punk" ethos with the demands of public markets.
Databricks
Databricks, a leader in cloud-based data analytics and AI, is a strong IPO candidate, but not until late 2025 or early 2026. Following a $10 billion funding round, the company, which supports major clients, including Apple and HSBC, is prioritising growth and platform development before going public. CEO Ali Ghodsi has indicated 2025 as the "earliest theoretical possibility," depending on favourable market conditions and post-election economic clarity. Databricks is well-positioned, with a predicted annual revenue run rate of $3 billion and positive free cash flow from 60% year-over-year growth. Strategic investments from Meta, QIA, and Temasek further underscore confidence in its data intelligence platform.
Discord
Discord, the real-time chat platform, is preparing for a potential IPO in 2025, most likely on the Nasdaq or NYSE. Following a $500 million funding round that valued the company at $15 billion, the company is now aiming for a 2025 public offering. With over 200 million monthly active users and 2023 revenue of $575 (up from $445 million in 2022), Discord's freemium model, which includes Nitro subscriptions and creator monetisation, has driven considerable growth. However, the company’s ability to improve profitability will be key to its IPO success, as investors increasingly favour tech firms with sustainable earnings.
Houzz
Houzz, the home design and renovation platform, is a potential 2025 IPO candidate; however, its listing timeline remains unknown. While the company has been preparing for an IPO since 2021, hiring Goldman Sachs to lead the process, earlier plans were pushed back due to poor market conditions. Recent reports suggest its valuation may have fallen significantly below its $4 billion valuation in 2017. Despite this, Houzz's SaaS model (Houzz Pro), integrated platform, and potential profitability may attract investors if the IPO market rebounds in 2025. The company's 2021 revenue of $340 million, tied to pandemic-era home renovations, may have been impacted by recent economic shifts and layoffs. While no firm date has been set, a 2025 IPO might be prompted by improved market conditions, liquidity requirements, or a push from private investors.
Klarna
Klarna, the Swedish BNPL (buy now, pay later) giant, is generally expected to seek a US IPO in the first half of 2025, following a confidential SEC filing. Targeting a valuation between $15 and $20 billion (down from a previous high of $45.6 billion), Klarna, which generated $1.2 billion in revenue in H1 2024, aims to achieve profitability. Klarna CEO Sebastian Siemiatkowski has demonstrated that the company's business model is both viable and strong, with a significant presence in the US. Key strategic moves include a global partnership with Stripe, expanding its reach to merchants in 26 countries, and plans to offload US loans to strengthen its balance sheet. While no date has been set, Klarna's IPO will be a key indicator of investor interest in fintech in 2025.
Kraken
Founded in 2011, Kraken, a prominent cryptocurrency exchange, is gearing up for a potential initial public offering (IPO) in 2025, albeit without a set date. Kraken has over 10 million active users and trades in over 185 cryptocurrency pairs. While the company purportedly raised more than $100 million in a final private funding round in June 2024 and has been strengthening its governance, its IPO plans are clouded by an ongoing SEC lawsuit alleging it operated as an unregistered securities exchange. The resolution of this legal challenge, along with market conditions and institutional interest in crypto, will significantly impact the timing and feasibility of Kraken's public listing. According to recent valuation estimates, Kraken is worth between $2.5 and $4 billion.
Monzo
Monzo, the UK-based digital bank founded in 2015, is aiming to be "IPO-ready" by the end of 2025 and possibly list in 2026. Monzo, which now serves over 11 million customers, recently reported its first annual profit of £15.4 million in 2024, as well as revenue growth to £880 million. While discussions continue regarding a UK or US listing venue, the appointment of former Nubank executive Tom Oldham as CFO indicates the company’s commitment to public markets. Market conditions and the listing location will determine the ultimate IPO timeline.
Revolut
Revolut, the fintech giant valued at $45 billion, is preparing for a highly anticipated Nasdaq IPO in 2025, though no precise date has been confirmed. With over 25 million customers and $2.2 billion in 2023 revenue, Revolut offers a range of financial services, including multi-currency accounts and cryptocurrency trading. Following a successful private share sale in mid-2024, the company, backed by investors like Coatue and Tiger Global, is expanding globally and introducing new products such as an AI assistant and mortgage offerings. Despite regulatory challenges, Revolut's recent banking license and steady growth position it well for a 2025 IPO.
Starling Bank
Starling Bank, the UK-based digital bank formed in 2014, is a potential IPO candidate for 2025, though no firm date has been set. Boasting over 2 million accounts, including 300,000 business accounts, Starling generates revenue through various fees and interest. Despite a £29 million FCA fine in 2024 for AML deficiencies, the bank remains profitable, with pre-tax profits up 54.7% to £301.1 million and revenue up 50% to £682.2 million. Under the leadership of new CEO Raman Bhatia, Starling is focussing on compliance and operational enhancements, with the possibility of a London Stock Exchange listing upon resolution of these issues.
Virgin Atlantic
Virgin Atlantic, which is jointly owned by Richard Branson and Delta, is a potential IPO candidate, though its 2025 listing remains uncertain. After a previously planned 2021 IPO was postponed due to market conditions and the pandemic, the airline has shown promising signs of recovery. Record 2023 revenues of £3.1 billion and EBITDA of £352 million indicate a return to profitability. However, no official IPO plans for 2025 have been announced, making its listing speculative at this stage.
How to trade IPOs with Axi
Trading IPOs with Axi allows you to speculate on newly listed stocks via CFDs. Note that IPO availability may vary, and prices can be highly volatile. Follow these steps:
- Fund your Axi live MT4 account.
- Post-listing, go to Market Watch > ‘Show All’ and search for the ticker (e.g., ‘XYZ+’).
- Select your position and size and decide whether to go long or short. Use limit orders and strict stop-losses to manage risk.
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The data is sourced from third-party providers. This information is not to be construed 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 trading strategy. It has been prepared without taking your objectives, financial situation, or needs into account. Any references to past performance and forecasts are not reliable indicators of future results. Axi makes no representation and assumes no liability regarding the accuracy and completeness of the content in this publication. Readers should seek their own advice.
