Pent-up demand and shifting deal dynamics are driving big first-day pops for IPOs, many of which have maintained robust performance, Ran Ben-Tzur recently told S&P Global Market Intelligence.
After a tepid few years, the first three quarters of 2025 saw strong initial trading on a number of highly anticipated IPOs, according to Market Intelligence. While prices have since come down, strong continued performance signals there’s more to these day-one highs than hype.
"Most recent IPOs have maintained strong performance, even if some of the year's highest flyers have come back down to earth relative to the trading immediately after the IPO," Ben-Tzur told the outlet. "Significant pops in the days following the IPO also tend to moderate over time as the company releases earnings and the stock starts trading on fundamentals, as opposed to trading based on IPO hype."
Ben-Tzur went on to explain how risks could emerge when stock valuations are not in sync with financial models, which can pressure a company's post-IPO momentum.
Read the full article at S&P Global Market Intelligence.