eToro’s $ETOR ( ▼ 2.3% ) upsized flotation, which priced 11.9 million shares at $52—above the initial $46–$50 range—and began trading on Nasdaq under the symbol ETOR on 14 May 2025, raised roughly $619 million and vaulted the stock more than 25 percent in its first two sessions. Yoni Assia hailed the deal as the first large pure‑play fintech IPO in four years, and the tape corroborates the enthusiasm: the shares quickly changed hands in the mid‑$60s, adding almost $2 billion to the company’s market value. (eToro, Business Wire)
eToro’s success lands at a moment when primary issuance has been quietly gaining altitude. Ernst & Young’s tally shows 59 U.S. IPOs in the first quarter of 2025, a 55 percent year‑over‑year increase, albeit with more modest aggregate proceeds than 2024 because mega‑deals remain scarce. (EY) PwC finds that the 61 traditional IPOs completed in 2024 had already matched the combined total of 2022 and 2023—a signal that the market bottomed last year and is climbing back, though still far below the feverish pace of 2020–2021. (PwC) Performance has been good enough to keep buyers engaged: the Renaissance IPO ETF is up about 11 percent over the past year and modestly positive year‑to‑date, a far cry from the double‑digit drawdowns that shut the window in 2022.
Pipeline visibility supports the view that issuance will continue but remain selective. Neobank Chime quietly filed an S‑1 this week, disclosing $1.67 billion in 2024 revenue against a relatively small operating loss and targeting the ticker CHYM on Nasdaq. Management shelved an earlier attempt in 2022 during what insiders now call the “fintech winter,” but bankers say demand looks healthy at a valuation near $20 billion. (Investopedia, Banking Dive) By contrast, Klarna has reportedly pushed its buy‑now‑pay‑later debut to late 2025, citing the need for “greater support and momentum” after tariff‑related volatility rattled growth stocks last month; the delay underlines how fragile appetite still is for companies whose economics hinge on discretionary consumer credit. (Sifted)
Several structural factors explain the cautious reopening. The Federal Reserve’s hiking cycle plateaued late last year, giving issuers clearer valuation markers as long‑duration discount rates stabilized. Equity investors, flush with money‑market yields, are demanding profitability or at least clear free‑cash‑flow paths, which screens out the aggressive growth names that dominated 2020–2021. Geopolitical noise—from tariff skirmishes to Mid‑East shipping disruptions—still prompts some boards to wait for quieter tape. Yet the American economy has avoided recession, real yields have edged lower, and the VIX has spent most of 2025 in the low teens. Those conditions foster a “Goldilocks” window: not exuberant, but open for companies with credible earnings stories and blue‑chip underwriters.
So are IPOs “back”? The answer is nuanced. The drought of 2022 is clearly over; the market is no longer hostile to new paper, and well‑positioned issuers such as eToro can clear deals at the top of the range or above. Nonetheless, bankers describe the current environment as a quality market, not a quantity one. Deals must combine brand recognition, sector tailwinds, and a path to near‑term profitability. Fintech qualifies because digital financial services continue to grab share, but only companies with resilient unit economics—Chime’s interchange‑driven model or eToro’s steady cohort retention—can pass investor diligence. Loss‑heavy unicorns with hazy operating leverage remain in the penalty box, as Klarna’s delay illustrates.
For readers of The OPC Ledger, the practical takeaway is twofold. First, expect a steady but not explosive calendar through the U.S. election: a dozen‑plus midsize listings each quarter, concentrated in fintech, AI infrastructure, and life sciences. Second, watch aftermarket performance; a few more eToro‑style pops could nudge fence‑sitters off the sidelines, while notable fumbles would slam the window shut again. IPOs are back in the sense that markets are once again compensating companies for venturing out, but the exuberance of the late‑pandemic boom is unlikely to return unless rates fall sharply or macro fear subsides further. For now, selectivity is the watchword, and success favors issuers prepared to meet the market on its own disciplined terms.