Remy Blaire is joined by Jim Neesen, IPO expert and Founding Executive at Connor Group, to discuss the current landscape of the IPO market as 2025 comes to a close. The conversation begins with an overview of the recent slowdown in IPO activity, which has been significantly impacted by the longest U.S. government shutdown in history and a more cautious approach from investors. Despite this downturn, Remy and Jim note that demand for new offerings remains strong, as investors are on the lookout for more affordable entry points in a market that still appears expensive.
Jim shares insights from the Connor Group’s recently released IPO report card for 2025. He highlights that SPACs have made a notable comeback, comprising 40% of the deals, but the trading performance has been less impressive, with only 51% of IPOs trading above their initial prices.
The discussion shifts to the backlog of deals with the SEC, with Jim pointing out that there are currently 436 deals on file, an all-time high. He likens the situation to a caffeine jolt after a long shutdown, suggesting that strong demand and positive earnings surprises from companies could lead to a vibrant IPO market in 2026.
Remy and Jim reflect on past IPOs, such as Figma, which have seen their stock prices decline post-debut. Jim emphasizes the importance of effective pricing strategies and the need for companies to balance the interests of institutional and retail investors.
Looking ahead, Jim outlines the characteristics of companies that are best positioned to go public in 2026. He identifies four essential elements for stability: revenue, profitability, a compelling story, and readiness for public company status. Additionally, he notes that integrating AI into business models is becoming increasingly crucial for companies seeking to attract investor interest.